##### 



EXHIBIT 13 (CORUS BANKSHARES LOGO)




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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT (LOGO) YEARS ENDED DECEMBER 31
    
    2003
    
    2002
    
    2001(dollars in thousands, except per share data)B A L A N
C E   S H E E T  S U M M A R YAssets
    
    $
    3,643,830
    
    
    $
    2,617,050
    
    
    $
    2,659,322Deposits
    
    
    2,846,402
    
    
    
    2,059,773
    
    
    
    2,121,456Loans, net
    
    
    2,397,323
    
    
    
    1,705,340
    
    
    
    1,475,245Common shareholders equity
    
    
    546,180
    
    
    
    482,041
    
    
    
    450,886I N C O M
E  S T A T E M E N T  S U M M A R YNet interest income
    
    $
    123,427
    
    
    $
    98,287
    
    
    $
    107,709Net income
    
    
    58,410
    
    
    
    49,314
    
    
    
    54,183Cash dividends paid to common shareholders
    
    
    18,548
    
    
    
    8,918
    
    
    
    8,628P E
R  S H A R E  D A T A ( 1 )Diluted earnings
    
    $
    2.04
    
    
    $
    1.72
    
    
    $
    1.89Cash dividends paid
    
    
    0.66
    
    
    
    0.32
    
    
    
    0.31Book value at year-end
    
    
    19.48
    
    
    
    17.07
    
    
    
    15.92Market value at year-end
    
    
    31.02
    
    
    
    21.83
    
    
    
    22.70F I N A N
C I A L  R A T I O SReturn on average common shareholders equity
    
    
    11.6
    %
    
    
    10.6
    %
    
    
    12.8
    %Return on average assets
    
    
    2.0
    %
    
    
    1.9
    %
    
    
    2.0
    %Efficiency ratio
    
    
    37.5
    %
    
    
    40.9
    %
    
    
    40.1
    %
 (1) All amounts have been restated to reflect a 100% stock dividend on
12/15/03. | 1 |




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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT (LOGO) WE ARE PLEASED TO REPORT2003 net income of $58.4 million, or $2.04 per
diluted share. Among 2003s highlights: we tripled our cash dividend to the
common shareholders, we had a 2  for  1 stock split, our total assets topped
$3 billion for the first time ever, loan originations set all-time records, and
overall loan losses were relatively low, including commercial real estate loan
losses of $0. All in all, 2003 was a banner year. FINANCIAL STRENGTH.Our common equity surpassed $540 million at the end of
2003. Building up a solid equity base has been one of our long-term goals.
Another source of Corus financial strength is our large supply of common
stocks of large/midcap financial institutions owned by the holding company.
Our stock portfolio had a market value at December 31, 2003, of $189
million. This stock portfolio is a source of strength as we could
liquidate a portion of this portfolio at a moments notice if the holding
company needed any cash. I say that a portion is available since the
holding company has effectively pledged $75 million to secure a $35
million bank loan to Corus Bankshares. But this leaves over $110 million
of common stocks that are unpledged and fully available if funds were
needed. LIQUIDITY IS CRITICAL.Banks must stand ready at all times to meet depositors
withdrawal requests and to fund disbursements under outstanding loan
commitments. Commercial real estate construction loans,
which are a significant part of our business, tend to start with very low
balances and thus bring about large unfunded commitments. Our commitments on
commercial real estate construction loans are intended to be, and in fact must
be (if the borrower is to complete the project), | 2 |




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CORUS BANKSHARES 2003 ANNUAL REPORT (BAR CHARTS) drawn down. As of December 31, 2003, Corus had total unfunded loan commitments
of about $1.5 billion. We would expect to fund 100% of these committed amounts
and generally we would expect these fundings would take place over the next 24
months. The part of liquidity analysis that is tricky is to estimate the
payoffs of loans over that same 24-month period. See Managements Discussion
and Analysis section for further discussion of liquidity. In order to have cash
available at all times for our deposit and loan customers, the Bank maintained
an average of $730 million in Liquidity Management Securities (LMS). Our
definition of LMS is overnight loans to other major banks, and high-quality,
short-term marketable investments owned by the Bank. It is important to note
that none of the LMS are pledged as collateral for any borrowings of the Bank
and can therefore be liquidated at a moments notice. Maintaining large amounts
of LMS is a conscious action undertaken as part of our broader strategy of
enhancing the safety of our operations. Our strong capital position, combined with our large pool of liquid
investments, has positioned Corus to weather times when the Company might
report operating losses and/or withdrawal of deposits. We are maintaining
capital and liquidity sufficient to weather the difficulties that we anticipate
might occur in the midst of a serious recession. During the recession of 1989
 1992, most banks that had foreclosed | 3 |




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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT real estate were required, either by the bank regulators or the stock market,
to sell their problem loans and their foreclosed real estate during the depths
of the recession at tremendous losses. Our planning anticipates that at some
point in the future we will have problem loans and, further, that we will have
to foreclose on some properties. It is our desire to have the ability to hold
foreclosed real estate until markets have stabilized and values have recovered.
We plan on charging off portions of any problem loan such that the loan is
written down to the then-current appraised value of the property. Furthermore,
prudence will require that the Bank remain well capitalized after these
charge-offs. RISK ASSESSMENT OF COMMERCIAL REAL ESTATE PORTFOLIO.Corus has spent the past
several years developing and refining an internal loan rating system to better
understand our commercial real estate portfolio. The foundation of this system
is managements estimation of the Probability of Default (POD) and Loss Given
Default (LGD) for each of our commercial real estate loans if a serious
recessionwere to occur. The POD is our estimate of how likely it is, given a
serious recession, a loan would go into default. The LGD is our estimate, given
a default, of what percentage of the loan would have to be charged off. This internal loan rating system provides us with many crucial insights,
including how much capital the bank should hold against the commercial real
estate loan portfolio. The required level of capital is, in turn, a key factor
in setting loan pricing. Failure to allocate sufficient capital would cause the
bank to underprice loans. We must set loan pricing to achieve a good return
over the course of an entire business cycle (for planning purposes, we use 10
years as an estimate of a business cycle)   not just during the good times. This system also provides us with an insight into potential levels of
nonperforming loans and charge-offs. It is important for our shareholders to
understand that Corus business strategy of originating (and retaining) large
amounts of commercial real estate loans, while quite successful and lucrative
to date, presents some material risks. Our internal loan rating model projects
that we could have $550 million of defaulted commercial real estate loans and
$90 million of these loans could be charged off. It bears repeating that these
projections are not based on todays market conditions, but rather what might
happen during a serious recession. We arrive at the estimates by stressing
all major assumptions regarding the cash flow and/or values of the underlying
real estate down to levels that could manifest themselves during a serious
recession. | 4 |




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CORUS BANKSHARES 2003 ANNUAL REPORT If we did, in fact, experience $550 million of defaulted loans and $90
million in charge-offs, this would be a huge increase from our historical
experience and would be considered very large even for a bank many times our
size. Although we have spent considerable time discussing our business plan
with you  the owners  and with our banking regulators, reporting
nonperforming loans and charge-offs of this magnitude could nonetheless lead
to, among other things, an adverse reaction on the part of our bank regulators,
bad publicity, a sharp decline in our stock price, and deposit withdrawals.
While this is not a scenario we find appealing, it is one that we all need to
be aware of and plan for, and the reason we keep such extremely high levels of
liquidity and capital. Under the Commercial Real Estate Risk Disclosure heading
in the Managements Discussion and Analysis section of this annual report, we
discuss this topic in greater detail. Please note that while our internal loan rating system generates very
precise numbers, and we have worked hard to arrive at inputs we believe
reasonable, this precision is more a function of the mathematical nature of the
model than a belief on our part that we can predict future results with any
such certainty. Our model, like all models, requires numerous assumptions and,
in this case, assumptions about how vulnerable each and every individual loan
will be to a serious recession at some unknown point in the future. Further,
the pristine credit quality of our commercial real estate portfolio over the
past ten-plus years has deprived us of any meaningful data points with which
we might have been able to refine our estimates. While the results reflect our
best estimates, it would not amaze us that our estimate might be a long way off
from 100% predictive. In other words, the actual level of nonperforming loans
and/or charge-offs that ultimately come to pass may be materially different
from our projections. LENDING RESTRUCTURING.We are pleased to report that our strategy of focusing
on commercial real estate lending, and exiting all other lending businesses, is
essentially complete. For many years Corus was an active lender in student and
residential real estate lending. After considerable study, we made the decision
to exit both lending businesses. We sold the student loan business, along with
loans totaling $460 million, in late 2000 for a gain of nearly $25 million.
Total loans outstanding immediately before the
sale stood at just over $1.9 billion. As we discussed with you at that time,
our game plan was to redeploy the deposits tied up in the low yielding student
loans into far more lucrative commercial real estate loans. We thought we
should be able to achieve that redeployment goal within three years. With total
loans at year-end 2003 in excess of $2.4 billion, we have clearly achieved our
goals. | 5 |




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CORUS BANKSHARES 2003 ANNUAL REPORT With respect to our residential real estate lending, we have, for all
intents and purposes, stopped originating any new residential loans since
December 2000. We decided to keep the existing residential real estate loans on
our books and they are paying down in a normal fashion. This portfolio, which
averaged only $73 million during 2003, contributed just 4% of our total
interest income and fees in 2003. We anticipate further paydowns on this loan portfolio in 2004, but it
is now such a small part of our portfolio that we will probably not be
commenting any further on this business. COMMERCIAL REAL ESTATE PORTFOLIO.Our commercial real estate loan portfolio
(including unfunded commitments) grew from $2.8 billion at December 31, 2002,
to $3.8 billion at December 31, 2003. We were very pleased with the growth of
our business. We added many new customers in the year. Loan originations were
$1.8 billion during 2003  a record year for us. Our current pipeline of
negotiations for new commercial real estate loans stands at nearly $3.0 billion
and we are optimistic that 2004 will bring another year of strong originations
and continued growth in loans outstanding. It is encouraging to note that the
pipeline contained $1.5 billion in January 2003, just one year ago. Corus has pursued several unorthodox strategies in our commercial real
estate lending business. First, investing such a large portion of a banks
assets in commercial real estate loans is unusual in the banking industry and
could be considered a concentration of risk. While we understand this
approach brings with it certain risks, we feel there are several factors that
mitigate this risk. Fundamentally, we feel it important for us to stick with
businesses in which Corus has developed considerable expertise. As discussed
earlier, we have positioned ourselves to weather bad times by building our
capital base to amounts far in excess of our peer group and by building our
liquidity to very strong levels. Our commercial real estate portfolio is diversified by property type: 49%
secured by condominiums, 19% by hotel, 15% by office, and 11% by residential
apartment projects. The remaining 6% are secured by retail, industrial, vacant
land and other types of property. Also, our business continues to be split
between construction lending and loans that are fully funded from the outset. Second, it is unusual for a bank of our size to lend nationwide. A full
87% of our total loan commitments (outstanding balances plus unfunded
commitments) are secured by properties outside of Illinois. This geographic
distribution of our loans is another important form of diversification and we
feel this diversification further mitigates our concentration in commercial
real estate loans. Third, we actively use our legal lending limit, which currently stands at
$90  $95 million. | 6 |




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CORUS BANKSHARES 2003 ANNUAL REPORT At December 31, 2003, the 33 largest loans averaged $58 million and made up
approximately half our total loan portfolio. Concentrating on larger loans has
two important benefits: (1) it allows senior management to become intimately
familiar with every large loan that we originate; and (2) we think there is
less competition associated with larger loans. Fourth, we have instituted a unique compensation program for the
commercial real estate loan officers that can be highly lucrative for the
officers who are originating new business. The aggregate 2003 bonuses for our
10 highest paid loan officers was $6.5 million. In order to manage the risks
posed by such an arrangement, Robert Glickman, who is not in this bonus program
and who is a major shareholder, approves every large loan. An additional, and
critical, aspect of this compensation program is that each officer shares in
the risk of loss on the loans they generate. A substantial portion of each
officers bonus is deferred for many years and is at risk of loss in the event
any of their loans fail to perform. The total value of all deferred bonuses
amounted to $17 million at year-end 2003. This motivates each officer to make
safe loans and it aligns the officers and Banks interests very closely. Another noteworthy item is our $714 million dollar portfolio of hotel
loans. For the past several years the hotel industry has been going through,
and continues to go through, difficult financial times. We have several loans
secured by hotels that are generating lower cash flows than we would like to
see. However, due in large part to strong sponsorship and a low interest rate
environment, only one of those loans is currently delinquent. We have
instituted foreclosure proceedings against the borrower on this delinquent
loan. Fortunately, this loan is relatively small and, more importantly, we
dont anticipate any loss. Management is tracking each of the hotel loans very
carefully. Frankly, these past three years have been a very trying time in the
hotel industry, and if we escape without any losses, that would be an excellent
test of our underwriting skills. Our total commercial real estate loan portfolio continues to perform
extremely well, as evidenced by zero (yes, $o) charge-offs in 2003, and a very
small amount of delinquent loans. Perhaps even more remarkably, we have had no
net charge-offs on this entire portfolio over the past 10 years. While we are
proud of our commercial real estate portfolios strong historical performance,
we have cautioned for many years against looking at the loan portfolios
performance only during good times. Although the last few years will probably
not be remembered as particularly good times, the entire banking industry
actually experienced a very low level of commercial real estate related loan
losses. We are proud of the success we have had in the commercial real estate
business thus far, and we | 7 |




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CORUS BANKSHARES 2003 ANNUAL REPORT believe that all of the risks noted above are being managed prudently, with a
careful eye on the bottom line. Unfortunately, there is no guarantee of success
in this, or any, business. We believe it is important for shareholders,
customers, and employees to understand these risks, so that they will not be
surprised if we experience some problems should there be a serious recession,
or if some of our large loans become nonperforming assets even in the absence
of such a recession. FOCUSED FOR THE FUTURE.We remain focused on our two main businesses and one
much smaller, but still important, business. The two main business activities
for Corus are commercial real estate lending
and deposit gathering. Our third and smaller business is servicing the check
cashing industry. Our main goals for 2004 are to:  
    
    Continue to generate high quality commercial real estate loans. As
mentioned, we closed on over $1.8 billion in new commercial real estate
loans during 2003. We will be attempting to achieve an increase in loan
volume in 2004;
    
    Gather deposits by building on the relationships we have forged with our
current customers and by working to attract new deposit customers; and
    
    Maintain our low cost structure, as reflected in 2003s outstanding
efficiency ratio of 37%. THANKS TO OUR PARTNERS.For our shareholders, we wish to thank you for the
confidence you have displayed by buying and holding our stock. We think of you
as our partners and pledge to treat you with respect and work hard to make your
investment worthwhile. For our customers, we wish to thank you for your past
business and we look forward to a long future with you. For our officers and
employees, we sincerely thank you for your many contributions to our success
and tell you again that we are proud of you and the job that you are doing. Sincerely, -s- Joseph C. Glickman
    
    -s- Robert J. GlickmanJ O S E P H C. G L I C K M A N
    
    R O B E R T J. G L I C K M A NChairman of the Board
    
    President and Chief Executive Officer
 | 8 |




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CORUS BANKSHARES 2003 ANNUAL REPORT (LOGO) consolidated
balance sheets
    
    
    10consolidated statements ofincome
    
    
    11consolidated statements ofchanges inshareholders equity
    
    
    12consolidated statements ofcash flows
    
    
    13notes toconsolidated financial statements
    
    
    14reports ofindependent public accountants
    
    
    43managements discussion andanalysis offinancial statements
    
    
    45supplemental financial data: 10-year history
    
    
    72directors andexecutive officers
    
    
    74
 | 9 |




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CORUS BANKSHARES 2003 ANNUAL REPORT CONSOLIDATED BALANCE SHEETS DECEMBER 31
    
    2003
    
    2002(dollars in thousands)A S S E T SCash and due from banks  noninterest-bearing
    
    $
    63,524
    
    
    $
    61,560Federal funds sold
    
    
    682,000
    
    
    
    370,100Securities:Available-for-sale, at fair valueCommon stocks, Bank Holding Company (amortized cost $95,661 and $101,478)
    
    
    188,844
    
    
    
    147,845Other securities (amortized cost $242,308 and $267,658)
    
    
    244,062
    
    
    
    272,799Held-to-maturity, at amortized cost (fair value $11,802 and $6,767)
    
    
    11,744
    
    
    
    6,687Total Securities
    
    
    444,650
    
    
    
    427,331Loans, net of unearned income
    
    
    2,433,771
    
    
    
    1,741,969Less: Allowance for loan losses
    
    
    36,448
    
    
    
    36,629Net Loans
    
    
    2,397,323
    
    
    
    1,705,340Premises and equipment, net
    
    
    26,313
    
    
    
    28,320Accrued interest receivable and other assets
    
    
    25,497
    
    
    
    19,876Goodwill, net of accumulated amortization of $30,009
    
    
    4,523
    
    
    
    4,523Total Assets
    
    $
    3,643,830
    
    
    $
    2,617,050L I A B I L
I T I E S   A N D  S H A R E H O L D E R S E Q U I T YLiabilities:Deposits:Noninterest-bearing
    
    $
    227,960
    
    
    $
    216,551Interest-bearing
    
    
    2,618,442
    
    
    
    1,843,222Total Deposits
    
    
    2,846,402
    
    
    
    2,059,773Long-term debt  trust preferred securities
    
    
    172,500
    
    
    
    Other borrowings
    
    
    36,403
    
    
    
    48,110Accrued interest payable and other liabilities
    
    
    42,345
    
    
    
    27,126Total Liabilities
    
    
    3,097,650
    
    
    
    2,135,009Shareholders equity: (1)Common stock, $0.05 par value, 50,000,000 shares authorized;28,036,888 and 28,238,488 shares issued, respectively
    
    
    1,402
    
    
    
    1,412Surplus
    
    
    16,942
    
    
    
    16,668Equity  options outstanding
    
    
    5,670
    
    
    
    Retained earnings
    
    
    
    
    
    
    430,482Accumulated other comprehensive income
    
    
    
    
    
    
    33,479Total Shareholders Equity
    
    
    546,180
    
    
    
    482,041Total Liabilities and Shareholders Equity
    
    $
    3,643,830
    
    
    $
    2,617,050
 See accompanying notes. (1) All amounts have been restated to reflect a 100% stock dividend on
12/15/03. | 10 |




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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT CONSOLIDATED STATEMENTS
of INCOME YEARS ENDED DECEMBER 31
    
    2003
    
    2002
    
    2001(in thousands, except per share data)I N T E R E
S T, L O A N  F E E S, A N D  D I V I D E N D I N C O M EInterest and fees on loans:Taxable
    
    $
    151,523
    
    
    $
    127,998
    
    
    $
    151,018Tax-advantaged
    
    
    158
    
    
    
    222
    
    
    
    396Federal funds sold
    
    
    4,912
    
    
    
    7,486
    
    
    
    23,085Securities:Taxable
    
    
    7,537
    
    
    
    11,847
    
    
    
    9,316Tax-advantaged
    
    
    63
    
    
    
    66
    
    
    
    74Dividends
    
    
    5,311
    
    
    
    4,810
    
    
    
    4,405Trading account
    
    
    735
    
    
    
    449
    
    
    
    336Total Interest, Loan Fees, and Dividend Income
    
    
    170,239
    
    
    
    152,878
    
    
    
    188,630I N T E R E
S T  E X P E N S EDeposits
    
    
    43,836
    
    
    
    52,796
    
    
    
    78,732Long-term debt  trust preferred securities
    
    
    1,812
    
    
    
    
    
    
    
    Borrowings
    
    
    1,164
    
    
    
    1,795
    
    
    
    1,541Federal Home Loan Bank advances
    
    
    
    
    
    
    
    
    
    
    648Total Interest Expense
    
    
    46,812
    
    
    
    54,591
    
    
    
    80,921Net Interest Income
    
    
    123,427
    
    
    
    98,287
    
    
    
    107,709Provision for loan losses
    
    
    
    
    
    
    
    
    
    
    Net Interest Income After Provision for Loan Losses
    
    
    123,427
    
    
    
    98,287
    
    
    
    107,709N O N I N T
E R E S T  I N C O M EService charges on deposit accounts
    
    
    11,878
    
    
    
    12,065
    
    
    
    11,094Securities and other financial instrument gains, net
    
    
    2,366
    
    
    
    7,258
    
    
    
    7,835Gain on sale of student loans
    
    
    
    
    
    
    
    
    
    
    2,201Other income
    
    
    2,676
    
    
    
    3,756
    
    
    
    4,586Total Noninterest Income
    
    
    16,920
    
    
    
    23,079
    
    
    
    25,716N O N I N T
E R E S T  E X P E N S ESalaries and employee benefits
    
    
    34,426
    
    
    
    29,672
    
    
    
    31,539Net occupancy
    
    
    4,231
    
    
    
    3,839
    
    
    
    4,059Data processing
    
    
    2,722
    
    
    
    2,445
    
    
    
    2,562Depreciation  furniture and equipment
    
    
    1,823
    
    
    
    2,448
    
    
    
    2,000Goodwill amortization
    
    
    
    
    
    
    
    
    
    
    893Other expenses
    
    
    9,331
    
    
    
    9,068
    
    
    
    10,047Total Noninterest Expense
    
    
    52,533
    
    
    
    47,472
    
    
    
    51,100Income Before Income Taxes
    
    
    87,814
    
    
    
    73,894
    
    
    
    82,325Income tax expense
    
    
    29,404
    
    
    
    24,580
    
    
    
    28,142Net Income
    
    $
    58,410
    
    
    $
    49,314
    
    
    $
    54,183Net income per share:(1)Basic
    
    $
    2.08
    
    
    $
    1.74
    
    
    $
    1.92Diluted
    
    
    2.04
    
    
    
    1.72
    
    
    
    1.89Weighted average common shares and common share equivalents outstanding
    
    
    28,703
    
    
    
    28,590
    
    
    
    28,619
 See accompanying notes. (1) All amounts have been restated to reflect a 100% stock dividend on
12/15/03. | 11 |




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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT CONSOLIDATED STATEMENTS of
CHANGES in SHAREHOLDERS EQUITY ACCUMULATEDEQUITY
    
    
    
    
    
    OTHERCOMMON
    
    
    
    
    
    OPTIONS
    
    RETAINED
    
    COMPREHENSIVESTOCK
    
    SURPLUS
    
    OUTSTANDING
    
    EARNINGS
    
    INCOME
    
    TOTAL(dollars in thousands, except per share data)Balance at December 31, 2000
    
    $
    1,414
    
    
    $
    11,842
    
    
    $
    
    
    
    $
    347,288
    
    
    $
    41,809
    
    
    $
    402,353Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    54,183
    
    
    
    
    
    
    
    54,183Other comprehensive income:Changes in net unrealized gains on securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    6,729
    
    
    
    6,729Reclassification adjustment for net gains
realized in net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (5,775
    )
    
    
    (5,775
    )Income tax effect
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (334
    )
    
    
    (334
    )Comprehensive Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    54,803Shares issued under the stock option plan,
10,800 common shares
    
    
    1
    
    
    
    205
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    206Shares issued under the Commercial Loan Officer
Commission Program, 63,008 common shares
    
    
    3
    
    
    
    (3
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Retirement
of 40,800 common shares
    
    
    (2
    )
    
    
    (20
    )
    
    
    
    
    
    
    (972
    )
    
    
    
    
    
    
    (994
    )Cash dividends declared on common stock,
$0.308 per common share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (8,701
    )
    
    
    
    
    
    
    (8,701
    )Deferred compensation
    
    
    
    
    
    
    3,219
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    3,219Balance at December 31, 2001
    
    $
    1,416
    
    
    $
    15,243
    
    
    $
    
    
    
    $
    391,798
    
    
    $
    42,429
    
    
    $
    450,886Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    49,314
    
    
    
    
    
    
    
    49,314Other comprehensive income:Changes in net unrealized gains on securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (9,004
    )
    
    
    (9,004
    )Reclassification adjustment for net gains
realized in net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4,765
    )
    
    
    (4,765
    )Income tax effect
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4,819
    
    
    
    4,819Comprehensive Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    40,364Retirement of 80,800 common shares
    
    
    (4
    )
    
    
    (44
    )
    
    
    
    
    
    
    (1,650
    )
    
    
    
    
    
    
    (1,698
    )Cash dividends declared on common stock,
$0.318 per common share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (8,980
    )
    
    
    
    
    
    
    (8,980
    )Deferred compensation
    
    
    
    
    
    
    1,469
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,469Balance at December 31, 2002
    
    $
    1,412
    
    
    $
    16,668
    
    
    $
    
    
    
    $
    430,482
    
    
    $
    33,479
    
    
    $
    482,041Adoption of SFAS No. 123
    
    
    
    
    
    
    (3,115
    )
    
    
    4,256
    
    
    
    
    
    
    
    
    
    
    
    1,141Net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    58,410
    
    
    
    
    
    
    
    58,410Other comprehensive income:Changes in net unrealized gains on securities
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    44,541
    
    
    
    44,541Reclassification adjustment for net gains
realized in net income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1,112
    )
    
    
    (1,112
    )Income tax effect
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (15,200
    )
    
    
    (15,200
    )Comprehensive Income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    86,639Stock options vested
    
    
    
    
    
    
    
    
    
    
    1,711
    
    
    
    
    
    
    
    
    
    
    
    1,711Shares issued under the stock option plan,
29,600 common shares
    
    
    2
    
    
    
    688
    
    
    
    (168
    )
    
    
    
    
    
    
    
    
    
    
    522Stock option settlements
    
    
    
    
    
    
    (102
    )
    
    
    (129
    )
    
    
    
    
    
    
    
    
    
    
    (231
    )Retirement of 231,200 common shares
    
    
    (12
    )
    
    
    (95
    )
    
    
    
    
    
    
    (5,136
    )
    
    
    
    
    
    
    (5,243
    )Cash dividends declared on common stock,
$0.830 per common share
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (23,298
    )
    
    
    
    
    
    
    (23,298
    )Deferred compensation
    
    
    
    
    
    
    2,898
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    2,898Balance at December 31, 2003
    
    $
    1,402
    
    
    $
    16,942
    
    
    $
    5,670
    
    
    $
    460,458
    
    
    $
    61,708
    
    
    $
    546,180
 See accompanying notes. All amounts have been restated to reflect a 100% stock dividend on 12/15/03. | 12 |




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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT CONSOLIDATED STATEMENTS of CASH FLOWS YEARS ENDED DECEMBER 31
    
    2003
    
    2002
    
    2001(dollars in thousands)CASH 
FLOWS  FROM OPERATING ACTIVITIESNet income
    
    $
    58,410
    
    
    $
    49,314
    
    
    $
    54,183Adjustments to reconcile net income to net cash provided by operating activities:Depreciation and amortization
    
    
    3,082
    
    
    
    3,705
    
    
    
    3,298Amortization (accretion) of investment and loan premiums (discounts), net
    
    
    966
    
    
    
    505
    
    
    
    (565
    )Goodwill amortization
    
    
    
    
    
    
    
    
    
    
    893Deferred income tax (benefit) expense
    
    
    (3,760
    )
    
    
    1,633
    
    
    
    65Securities gains, net
    
    
    (2,366
    )
    
    
    (7,258
    )
    
    
    (7,835
    )Gain on dispositions of student loans
    
    
    
    
    
    
    
    
    
    
    (303
    )Deferred compensation, net
    
    
    4,064
    
    
    
    2,320
    
    
    
    3,232Stock option expense
    
    
    1,711
    
    
    
    
    
    
    
    Gain on sale of student loans
    
    
    
    
    
    
    
    
    
    
    (2,201
    )Gain on sale of fixed assets
    
    
    
    
    
    
    
    
    
    
    (135
    )(Increase) decrease in accrued interest receivable and other assets
    
    
    (4,790
    )
    
    
    7,990
    
    
    
    9,974Decrease in accrued interest payable and other liabilities
    
    
    (959
    )
    
    
    (1,838
    )
    
    
    (17,228
    )Net Cash Provided by Operating Activities
    
    
    56,358
    
    
    
    56,371
    
    
    
    43,378CASH 
FLOWS  FROM  INVESTING ACTIVITIESProceeds from maturities of held-to-maturity securities
    
    
    119
    
    
    
    337
    
    
    
    452Proceeds from maturities of available-for-sale securities
    
    
    150,330
    
    
    
    73,868
    
    
    
    75,727Proceeds from sales of available-for-sale securities
    
    
    10,883
    
    
    
    233,589
    
    
    
    197,568Purchases of available-for-sale securities
    
    
    (134,573
    )
    
    
    (360,585
    )
    
    
    (202,377
    )Net (increase) decrease in loans
    
    
    (695,214
    )
    
    
    (275,006
    )
    
    
    11,143Bad debt recoveries
    
    
    3,114
    
    
    
    2,229
    
    
    
    4,488Purchases of premises and equipment, net
    
    
    (1,075
    )
    
    
    (2,652
    )
    
    
    (1,832
    )Proceeds from sale of fixed assets
    
    
    
    
    
    
    
    
    
    
    831Proceeds from sale of student loans and
trust and investment management business
    
    
    
    
    
    
    
    
    
    
    65,430Net Cash (Used in) Provided by Investing Activities
    
    
    (666,416
    )
    
    
    (328,220
    )
    
    
    151,430CASH FLOWS
FROM FINANCING ACTIVITIESIncrease (decrease) in deposit accounts
    
    
    786,629
    
    
    
    (61,683
    )
    
    
    13,826Proceeds from issuance of long-term debt
    
    
    172,500
    
    
    
    
    
    
    
    50,000Repayment of debt
    
    
    (9,000
    )
    
    
    (4,000
    )
    
    
    (42,000
    )(Decrease) increase in other borrowings, net
    
    
    (2,707
    )
    
    
    (3,706
    )
    
    
    6,731Stock option exercises/settlements
    
    
    291
    
    
    
    
    
    
    
    206Retirements of common shares
    
    
    (5,243
    )
    
    
    (1,698
    )
    
    
    (994
    )Cash dividends paid on common shares
    
    
    (18,548
    )
    
    
    (8,918
    )
    
    
    (8,628
    )Net Cash Provided by (Used in) Financing Activities
    
    
    923,922
    
    
    
    (80,005
    )
    
    
    19,141Net Increase (Decrease) in Cash and Cash Equivalents
    
    
    313,864
    
    
    
    (351,854
    )
    
    
    213,949Cash and cash equivalents at beginning of year
    
    
    431,660
    
    
    
    783,514
    
    
    
    569,565Cash and Cash Equivalents at End of Year
    
    $
    745,524
    
    
    $
    431,660
    
    
    $
    783,514Supplemental disclosures:Interest paid
    
    $
    48,357
    
    
    $
    56,416
    
    
    $
    82,604Income taxes paid
    
    
    30,900
    
    
    
    22,772
    
    
    
    38,390
 See accompanying notes. | 13 |




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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT

NOTES to CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The consolidated financial statements include the accounts of Corus Bankshares,
Inc. (Corus) and its wholly owned subsidiary, Corus Bank, N.A. Corus, through
its subsidiary bank, provides retail banking services primarily in the Chicago
metropolitan area. In addition, Corus commercial lending group provides
financing nationwide, almost exclusively collateralized by real estate. In the
preparation of the consolidated financial statements, management is required to
make certain estimates and assumptions that affect the reported amounts
contained in the consolidated financial statements. Management believes that
the estimates made are reasonable; however, changes in estimates may be
required if economic or other conditions change significantly beyond
managements expectations. See Allowance for Loan Losses accounting policies
below.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of
Corus and its subsidiary. Intercompany transactions impacting the income
statement are limited to interest payments by the subsidiary bank on parent
company deposit accounts. Other intercompany transactions include dividend
payments, capital contributions, and the use of parent company stock in the
subsidiary banks Commercial Loan Officer Commission Program and the Stock
Option Program. All intercompany accounts and transactions have been eliminated
in the consolidated financial statements.

Cash and Cash Equivalents

Cash and cash equivalents include cash, due from banks, and federal funds sold
which have an original maturity of 90 days or less.

Securities

Securities are classified based on managements intention at time of purchase.
Trading securities, which are generally held in anticipation of short-term
gains, are carried at their fair value. Realized and unrealized gains and
losses on trading account securities are included in securities and other
financial instrument gains/(losses).

Available-for-sale securities are those securities to be held for
indefinite periods of time. These securities include those that management
intends to use as part of its asset/liability management strategy and may be
sold in response to changes in interest rates, market conditions or other
reasons. These securities are carried at fair value. The difference between
amortized cost and fair value, less deferred income taxes, is reflected as a
component of other comprehensive income in the Consolidated Statement of
Changes in Shareholders Equity. Amortized cost represents the cost of
securities plus or minus the amortization/accretion of premium/discount,
adjusted for losses associated with other than temporary declines in value.

Securities held-to-maturity represents securities that Corus has the
ability and positive intent to hold to maturity. These securities are carried
at amortized cost.

Interest and dividend income, including amortization of premiums and
accretion of discounts, are included in interest, loan fees, and dividend
income. Realized gains and losses are determined on a specific identification
basis. Provisions are made to write down the value of securities for declines
in value that are other than temporary.

| 14 |





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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT

Loans

Loans are reported at the principal amount outstanding, net of any unearned
discount or deferred origination fees. Interest income is generally recognized
using the level-yield method. Loan origination fees, net of direct costs
related to the origination, are deferred and amortized as a yield adjustment
over the lives of the related loans.

The accrual of interest income is
discontinued on any loan when there is reasonable doubt as to the ultimate
collectibility of interest or principal. Loans past due over 90 days continue
to accrue interest income only if there are adequate sources of repayment.
These sources include sufficient collateral to cover repayment of the loan or
other designated sources of repayment. Nonaccrual loans are returned to accrual
status when the financial position of the borrower indicates there is no longer
any reasonable doubt as to the payment of principal or interest.

Nonaccrual loans, troubled debt restructurings, and loans past due by 90
days or more are considered to be impaired loans. Impairment is also measured
by comparing the book value of the loan to its fair value, based on the present
value of expected cash flows, the market price of the loan, or the fair value
of the underlying collateral. If the fair value of the loan is less than the
book value, a valuation allowance is established as a component of the
allowance for loan losses and the loan is considered to be impaired. Interest
income from nonaccrual impaired loans is recognized on a cash basis and only
when collection of the related principal balances is no longer in question.

Home equity lines of credit and second mortgage loans are generally
charged off after 120 days past due or after 60 days past due if the account is
in bankruptcy. Other loan types are charged off when designated loss by the
Banks regulators, past due more than 180 days (unless well-collateralized), or
when deemed uncollectible by management. Past due and delinquency status is
determined based on contractual terms.

Allowance for Loan Losses

The allowance for loan losses (the Allowance) is available to absorb losses
inherent in the loan portfolio. Decreases to the Allowance result as loans, or
portions thereof, are charged off while increases result from the recovery of
previously charged off loans. In addition, charges against earnings through the
provision for loan losses also increase the Allowance.

The Allowance is based upon quarterly reviews. These reviews include an
assessment of the loan portfolio and include reviews of both specific credits
and an overall assessment. Specific reviews are performed in accordance with
Statement of Financial Accounting Standards (SFAS) No. 114, Accounting by
Creditors for Impairment of a Loan, and can result in a specific reserve for
certain impaired loans. For those loans not specifically reviewed, an
assessment is performed, by loan type (i.e., commercial, commercial real
estate, construction, home equity, residential first mortgage, etc.) to
determine an inherent loss rate. The inherent loss rate is based primarily on a
combination of prior loss experience and delinquency levels (current vs.
historical). In those cases where, due to insufficient historical data, Corus
loss and delinquency experience may not accurately reflect the inherent losses
in a segment of the portfolio, Corus will utilize the respective historical
rates as published by the Federal Deposit Insurance Corporation (FDIC) in its
Quarterly Banking Profile publication. For commercial real estate loans, Corus
utilizes the historical FDIC loss and delinquency rates.

Additional factors are also considered including the level of problem and
potential problem loans, trends in volume and terms of loans, changes in risk
selection and underwriting standards, experience, ability and depth of lending
management, and economic and industry conditions.

The assessment as to the
adequacy of the allowance for loan losses is grounded by the assumption that
historical experience is a good predictor of future performance. This
assumption, while supported by guidance provided by the

| 15 |





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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT

Financial Accounting Standards Board, the Office of the Comptroller of the
Currency, and the Securities & Exchange Commission, may not ultimately be
correct. In that event, estimates of inherent losses may differ from actual
results.

Premises and Equipment

Premises and equipment are stated at cost, less accumulated depreciation.
Depreciation on premises is computed primarily using the straight-line method
over the estimated useful life. Depreciation on furniture and equipment is
computed using accelerated methods. Expenditures for normal repairs and
maintenance are charged to expense as incurred.

Other Real Estate Owned

Other real estate owned includes properties acquired through foreclosure. These
properties are generally recorded at the lower of cost or estimated realizable
value. Gains and losses from the sale or write-down of other real estate owned
are included in other income. The net costs of maintaining these properties are
included in operating expenses.

Goodwill

Prior to January 1, 2002, goodwill, which is the cost of investments in
subsidiaries in excess of the fair value of the net assets acquired, was being
amortized over periods of 12 to 15 years. Under SFAS No. 142, goodwill is no
longer amortized, but is instead subjected to an annual impairment test. The
test consists of a two-step process whereby a determination is first made as to
whether an impairment exists, and then whether an adjustment is required. See
Note 17 for quantitative disclosure.

Derivatives

The Company enters into certain derivative transactions as part of its overall
interest rate risk management process. SFAS No. 133, Accounting for Derivative
Instruments and Hedging Activities, as amended, requires a company to
recognize all derivative instruments at fair value on its balance sheet. The
accounting for changes in fair value (i.e., gains or losses) of a derivative
instrument depends on whether it has been designated and qualifies as part of a
hedging relationship and further, on the type of hedging relationship. The
Company formally documents all relationships between hedging instruments and
hedged items, as well as its risk-management objective and strategy for
undertaking each hedge transaction.

Derivative instruments designated in a
hedge relationship to mitigate exposure to changes in the fair value of an
asset, liability, or firm commitment are considered fair value hedges under
SFAS No. 133. Fair value hedges are accounted for by recording the fair value
of the derivative instrument and the fair value related to the hedged asset or
liability on the balance sheet with corresponding offsets recorded in the
income statement. The adjustment to the hedged asset or liability is included
in the basis of the hedged item, while the fair value of the derivative is
recorded as a freestanding asset or liability. Actual cash receipts or payments
and related amounts accrued during the period on derivatives, included in a
fair value hedge relationship, are recorded as offsets to the related interest
income or expense recorded on the hedged asset or liability.

Derivative
instruments designated in a hedge relationship to mitigate exposure to
variability in expected future cash flows, or other types of forecasted
transactions, are considered cash flow hedges. Cash flow hedges are accounted
for by recording the fair value of the derivative instrument on the balance
sheet as either a freestanding asset or liability, with a corresponding offset
recorded in other comprehensive income within shareholders equity, net of
taxes. Amounts are reclassified from other comprehensive income to the income
statement in the period or periods the hedged transaction affects earnings.

| 16 |





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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT

Under both the fair value and cash flow hedge methods, any ineffective
portions of the hedges are recognized immediately in income. For derivative
instruments not designated as hedging instruments, the gain or loss is
recognized in noninterest income as a part of securities and other financial
instrument gains/(losses).

Stock-Based Employee Compensation

Corus utilizes its stock to compensate employees under two different plans, the
1999 Stock Option Plan (the Plan) and the Commercial Loan Officer Commission
Program (the CLO Program). These plans are described more fully in Note 14
and in Managements Discussion and Analysis of Financial Statements. Both plans
were approved by shareholders.

Effective January 1, 2003, Corus adopted the fair value recognition
provisions of SFAS No. 123, Accounting for Stock-Based Compensation. Corus
elected to adopt SFAS No. 123 using the modified prospective method. Under the
modified prospective method, the recognition of compensation cost in 2003 is
the same as what would have been recognized had the provisions of SFAS No. 123
been applied since the date of grant for all outstanding options. However,
results for prior years have not been restated and therefore reflect the
previous method of accounting for stock-based compensation under the
recognition and measurement provisions of Accounting Principles Board Opinion
No. 25 (APB No. 25), Accounting for Stock Issued to Employees, and related
Interpretations.

Under the fair-value method, compensation cost for stock-based
compensation is recognized over the vesting period of the instrument based on
the fair value as determined at the grant date. No adjustments to expense are
recorded to reflect any changes in fair value subsequent to the grant date.
Exercises, in general, result in no additional cost and compensation cost is
never recognized for options forfeited prior to vesting.

With respect to the
CLO Program, under APB No. 25, Corus was required to account for any
compensation deferred in Corus stock under variable plan accounting. As such,
Corus was required to record an adjustment to compensation expense based on the
value of deferred shares as determined by changes in the market price of Corus
stock. This mark-to-market adjustment is not required under SFAS No. 123.

All
stock options granted under the Plan had an exercise price equal to the market
value of the underlying common stock on the date of grant. The following table
illustrates the effect on net income and earnings per share if the fair-value
based method had been applied to all outstanding and unvested awards in each
period.

|                                                                                                                                            |                       |      |        |      |  |      |        |      |  |   |        |      | 
|------------------------------------------------------------------------------------------------------------------------------------------- | --------------------- | ---- | ------ | ---- |  | ---- | ------ | ---- |  | - | ------ | ---- | 
|YEARS ENDED DECEMBER 31                                                                                                                     |                       | 2003 |        | 2002 |  | 2001
|                                                                                                                                            |                       |      |        |      |  |     
|(dollars in thousands, except per share data)                                                                                               |                       |      |        |      |  |      |        |      |  |   |        |     
|Net income, as reported                                                                                                                     |                       | $    | 58,410 |      |  | $    | 49,314 |      |  | $ | 54,183 |     
|Add: Stock-based employee compensation expense included
in reported net income, net of related tax effects                                  |                       |      | 1,112  |      |  |      | 101    |      |  |   | 615    |     
|Deduct: Total stock-based employee compensation expense determined
under fair value based method for all awards, net of related tax effects |                       |      | (1,112 | )    |  |      | (1,046 | )    |  |   | (794   | )   
|                                                                                                                                            |                       |      |        |      |  |      |        |      |  |   |        |     
|Pro Forma Net Income                                                                                                                        |                       | $    | 58,410 |      |  | $    | 48,369 |      |  | $ | 54,004 |     
|                                                                                                                                            |                       |      |        |      |  |      |        |      |  |   |        |     
|Earnings per share:(1)                                                                                                                      |                       |      |        |      |  |      |        |      |  |   |        |     
|                                                                                                                                            | Basic  as reported   |      | $      | 2.08 |  |      | $      | 1.74 |  |   | $      | 1.92 | 
|                                                                                                                                            | Basic  pro forma     |      |        | 2.08 |  |      |        | 1.71 |  |   |        | 1.91 | 
|                                                                                                                                            | Diluted  as reported |      |        | 2.04 |  |      |        | 1.72 |  |   |        | 1.89 | 
|                                                                                                                                            | Diluted  pro forma   |      |        | 2.04 |  |      |        | 1.69 |  |   |        | 1.89 | 
|                                                                                                                                            |                       |      |        |      |  |      |        |      |  |   |        |     

(1)All amounts have been restated to reflect a 100% stock dividend on
12/15/03.

| 17 |





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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT

For the pro forma disclosure, the estimated fair value of the options is
amortized to expense over the options five-year vesting period. The fair value
of options granted was computed using the Black-Scholes model using the
following assumptions:

|                         |  |         |       |         |  |         |       |         |  |         |       |       |  |   |       |       |  |   |       |      
|------------------------ |  | ------- | ----- | ------- |  | ------- | ----- | ------- |  | ------- | ----- | ----- |  | - | ----- | ----- |  | - | ----- | -----
|GRANT DATE               |  | 4/10/03 |       | 6/11/02 |  | 4/22/02 |       | 10/1/01 |  | 4/23/01
|                         |  |         |       |         |  |         |       |         |  |        
|Risk-free rate           |  |         | 4.28  | %       |  |         | 5.44  | %       |  |         | 5.68  | %     |  |   | 4.55  | %     |  |   | 5.20  | %    
|Expected life            |  |         | 10    | years   |  |         | 10    | years   |  |         | 10    | years |  |   | 10    | years |  |   | 10    | years
|Expected volatility      |  |         | 25.90 | %       |  |         | 26.30 | %       |  |         | 26.30 | %     |  |   | 25.85 | %     |  |   | 23.82 | %    
|Expected dividend yields |  |         | 4.76  | %       |  |         | 1.32  | %       |  |         | 1.28  | %     |  |   | 1.38  | %     |  |   | 1.26  | %    
|Fair value               |  | $       | 7.60  |         |  | $       | 19.57 |         |  | $       | 20.71 |       |  | $ | 16.81 |       |  | $ | 19.07 |      
|                         |  |         |       |         |  |         |       |         |  |         |       |       |  |   |       |       |  |   |       |      

Reclassifications

Certain prior year amounts have been reclassified to conform to the 2003
presentation.

NOTE 2: RECENT ACCOUNTING PRONOUNCEMENTS

SFAS No. 132 (Revised 2003)  Employers Disclosures about Pension Plans and
Other Postretirement Benefit Plans

In December 2003, the Financial Accounting Standards Board (FASB) issued a
revision of SFAS No. 132, which requires additional disclosures about
employers pension plans and other postretirement benefit plans. It does not
change the measurement or recognition of those plans required by SFAS No. 87,
Employers Accounting for Pensions, SFAS No. 88, Employers Accounting for
Settlements and Curtailments of Defined Benefit Pension Plans and for
Termination Benefits, and SFAS No. 106, Employers Accounting for
Postretirement Benefits Other Than Pensions. This statement retains the
disclosure requirements contained in SFAS No. 132 as originally issued, which
it replaces. It requires additional disclosures to those in the original
statement about the assets, obligations, cash flows, and net periodic benefit
cost of defined benefit pension plans and other defined benefit postretirement
plans. The revised disclosure requirements are included in this report in Note
10, Employee Benefit Plans.

SFAS No. 148  Accounting for Stock-Based Compensation  Transition and
Disclosure

In December 2002, SFAS No. 148 was issued and provides alternative methods of
transition for a voluntary change to the fair value based method of accounting
for stock-based employee compensation. In addition, the statement amends the
disclosure requirements of SFAS No. 123 to require prominent disclosures in
both annual and interim financial statements about the method of accounting for
stock-based employee compensation and the effect of the method used on reported
results. This statement is effective for Corus beginning with the fiscal period
ending December 31, 2002. Corus has elected to change to the fair value based
method of accounting for stock-based employee compensation and adopted the
accounting standard using the modified prospective method. Under the modified
prospective method, companies are required to begin recognizing stock-based
employee compensation, in accordance with the standard, in the year of
adoption.

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CORUS BANKSHARES 2003 ANNUAL REPORT

FIN 46  Consolidation of Variable Interest Entities

In January 2003, the FASB issued FASB Interpretation No. 46 (FIN 46),
Consolidation of Variable Interest Entities. The objective of this
interpretation is to provide guidance on how to identify a variable interest
entity (VIE) and determine when the assets, liabilities, noncontrolling
interest, and results of operations of a VIE need to be included in a companys
consolidated financial statements. In December 2003 the FASB issued revisions
to FIN 46 to clarify some of the provisions of the interpretation. The Company
does not expect the requirements of FIN 46 to have a material impact on results
of operations, financial position, or liquidity.

FIN 45  Guarantees

In November 2002, the FASB issued FASB Interpretation No. 45 (FIN 45),
Guarantors Accounting and Disclosure Requirements for Guarantees, Including
Indirect Guarantees of Indebtedness of Others. This interpretation expands the
disclosures to be made by a guarantor in its financial statements about its
obligations under certain guarantees and requires the guarantor to recognize a
liability for the fair value of an obligation assumed under a guarantee. The
interpretation also clarifies that a guarantor is required to recognize, at the
inception of a guarantee, a liability for the fair value of the obligation
undertaken in issuing the guarantee. The disclosure requirements of FIN 45 are
effective for the Company as of December 31, 2002. The recognition requirements
of FIN 45 are to be applied prospectively to guarantees issued or modified
after December 31, 2002. Significant guarantees that have been entered into by
the Company are disclosed in Note 12. The Company does not expect the
requirements of FIN 45 to have a material impact on results of operations,
financial position, or liquidity.

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CORUS BANKSHARES 2003 ANNUAL REPORT

NOTE 3: SECURITIES

The amortized cost, gross unrealized gains and losses, and fair value of
securities were as follows:

|                                    |  |           |         |       |  |                  |        |       |  |   |   |  |  |   |         | 
|----------------------------------- |  | --------- | ------- | ----- |  | ---------------- | ------ | ----- |  | - | - |  |  | - | ------- | 
|                                    |  |           |         |       |  | GROSS UNREALIZED |        |       |  |  
|                                    |  | AMORTIZED |         |       |  | FAIR            
|DECEMBER 31, 2003                   |  | COST      |         | GAINS |  | LOSSES           |        | VALUE
|                                    |  |           |         |       |  |                  |        |      
|(dollars in thousands)              |  |           |         |       |  |                  |        |       |  |   |   |  |  |   |         | 
|A
V A I L A B L E - F O R - S A L E |  |           |         |       |  |                  |        |       |  |   |   |  |  |   |         | 
|U.S. Government and agencies        |  | $         | 205,902 |       |  | $                | 837    |       |  | $ |  |  |  | $ | 206,739 | 
|Corporate debt securities           |  |           | 27,427  |       |  |                  | 764    |       |  |   |  |  |  |   | 28,191  | 
|Common stocks, Bank Holding Company |  |           | 95,661  |       |  |                  | 93,183 |       |  |   |  |  |  |   | 188,844 | 
|Other                               |  |           | 8,979   |       |  |                  | 153    |       |  |   |  |  |  |   | 9,132   | 
|                                    |  |           |         |       |  |                  |        |       |  |   |   |  |  |   |         | 
|Total                               |  | $         | 337,969 |       |  | $                | 94,937 |       |  | $ |  |  |  | $ | 432,906 | 
|                                    |  |           |         |       |  |                  |        |       |  |   |   |  |  |   |         | 
|H E L D - T O - M A T U R I T Y     |  |           |         |       |  |                  |        |       |  |   |   |  |  |   |         | 
|State and municipal                 |  | $         | 1,100   |       |  | $                | 44     |       |  | $ |  |  |  | $ | 1,144   | 
|Other                               |  |           | 10,644  |       |  |                  | 14     |       |  |   |  |  |  |   | 10,658  | 
|                                    |  |           |         |       |  |                  |        |       |  |   |   |  |  |   |         | 
|Total                               |  | $         | 11,744  |       |  | $                | 58     |       |  | $ |  |  |  | $ | 11,802  | 
|                                    |  |           |         |       |  |                  |        |       |  |   |   |  |  |   |         | 

|                                    |  |           |         |       |  |                  |        |       |  |   |        |   |  |   |         | 
|----------------------------------- |  | --------- | ------- | ----- |  | ---------------- | ------ | ----- |  | - | ------ | - |  | - | ------- | 
|                                    |  |           |         |       |  | GROSS UNREALIZED |        |       |  |  
|                                    |  | AMORTIZED |         |       |  | FAIR            
|DECEMBER 31, 2002                   |  | COST      |         | GAINS |  | LOSSES           |        | VALUE
|                                    |  |           |         |       |  |                  |        |      
|(dollars in thousands)              |  |           |         |       |  |                  |        |       |  |   |        |   |  |   |         | 
|A V A I L A B L E - F O R - S A L E |  |           |         |       |  |                  |        |       |  |   |        |   |  |   |         | 
|U.S. Government and agencies        |  | $         | 211,970 |       |  | $                | 2,830  |       |  | $ |       |   |  | $ | 214,800 | 
|Corporate debt securities           |  |           | 42,341  |       |  |                  | 2,028  |       |  |   |       |   |  |   | 44,369  | 
|Common stocks, Bank Holding Company |  |           | 101,478 |       |  |                  | 54,151 |       |  |   | (7,784 | ) |  |   | 147,845 | 
|Other                               |  |           | 13,347  |       |  |                  | 283    |       |  |   |       |   |  |   | 13,630  | 
|                                    |  |           |         |       |  |                  |        |       |  |   |        |   |  |   |         | 
|Total                               |  | $         | 369,136 |       |  | $                | 59,292 |       |  | $ | (7,784 | ) |  | $ | 420,644 | 
|                                    |  |           |         |       |  |                  |        |       |  |   |        |   |  |   |         | 
|H E L D - T O - M A T U R I T Y     |  |           |         |       |  |                  |        |       |  |   |        |   |  |   |         | 
|State and municipal                 |  | $         | 1,099   |       |  | $                | 59     |       |  | $ |       |   |  | $ | 1,158   | 
|Other                               |  |           | 5,588   |       |  |                  | 21     |       |  |   |       |   |  |   | 5,609   | 
|                                    |  |           |         |       |  |                  |        |       |  |   |        |   |  |   |         | 
|Total                               |  | $         | 6,687   |       |  | $                | 80     |       |  | $ |       |   |  | $ | 6,767   | 
|                                    |  |           |         |       |  |                  |        |       |  |   |        |   |  |   |         | 

The scheduled maturities for securities were as follows:

|                                        |          |      |                    |         |                  |      |           |         |      |   |        |       |  |   |        |       | 
|--------------------------------------- | -------- | ---- | ------------------ | ------- | ---------------- | ---- | --------- | ------- | ---- | - | ------ | ----- |  | - | ------ | ----- | 
|                                        |          |      | AVAILABLE-FOR-SALE |         | HELD-TO-MATURITY
|                                        |          |      |                    |         |                 
|                                        |          |      | AMORTIZED          |         | FAIR             |      | AMORTIZED |         | FAIR
|DECEMBER 31, 2003                       |          | COST |                    | VALUE   |                  | COST |           | VALUE  
|                                        |          |      |                    |         |                  |      |           |        
|(dollars in thousands)                  |          |      |                    |         |                  |      |           |         |      |   |        |       |  |   |        |      
|Due in:                                 |          |      |                    |         |                  |      |           |         |      |   |        |       |  |   |        |      
|One year or less                        |          | $    | 107,675            |         |                  | $    | 108,981   |         |      | $ |       |       |  | $ |       |      
|After one year through five years       |          |      | 125,654            |         |                  |      | 125,949   |         |      |   | 717    |       |  |   | 751    |      
|After five years through ten years      |          |      |                   |         |                  |      |          |         |      |   | 536    |       |  |   | 558    |      
|After ten years                         |          |      | 4,893              |         |                  |      | 5,046     |         |      |   | 29     |       |  |   | 31     |      
|                                        |          |      |                    |         |                  |      |           |         |      |   |        |       |  |   |        |      
|                                        | Subtotal |      |                    | 238,222 |                  |      |           | 239,976 |      |   |        | 1,282 |  |   |        | 1,340 | 
|Securities not due at a single maturity |          |      | 99,747             |         |                  |      | 192,930   |         |      |   | 10,462 |       |  |   | 10,462 |      
|                                        |          |      |                    |         |                  |      |           |         |      |   |        |       |  |   |        |      
|Total                                   |          | $    | 337,969            |         |                  | $    | 432,906   |         |      | $ | 11,744 |       |  | $ | 11,802 |      
|                                        |          |      |                    |         |                  |      |           |         |      |   |        |       |  |   |        |      

Actual maturities may differ from those scheduled due to prepayments by the
issuers.

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CORUS BANKSHARES 2003 ANNUAL REPORT

Gross gains realized on sales of available-for-sale securities totaled $10.1
million, $4.8 million, and $6.0 million during 2003, 2002, and 2001,
respectively. Gross losses realized on sales of available-for-sale securities
were $25,000 and $216,000 in 2002 and 2001, respectively. While there were no
losses realized on sales of available-for-sale securities in 2003, Corus did
realize a loss in the first quarter of $9.0 million due to an adjustment for an
other than temporary decline in value, as defined by SFAS No. 115. As of
December 31, 2003, $8.7 million of the other than temporary decline in value
had been recovered and is included in unrealized gains. Please see Managements
Discussion and Analysis of Financial Statements for further discussion. As of
December 31, 2003, there were no securities with unrealized losses.

Securities having an aggregate carrying value of $12.3 million and $12.7
million at December 31, 2003 and 2002, respectively, were pledged as collateral
to secure public deposits and for other purposes.

NOTE 4: LOANS

Total loans, net of deferred loan fees and other discounts of $25.5 million and
$22.6 million at December 31, 2003 and 2002, respectively, were as follows:

|                             |                  |                              |           |           |           |   |           |         |           | 
|---------------------------- | ---------------- | ---------------------------- | --------- | --------- | --------- | - | --------- | ------- | --------- | 
|DECEMBER 31                  |                  | 2003                         |           | 2002     
|                             |                  |                              |           |          
|(dollars in thousands)       |                  |                              |           |           |           |   |           |        
|Commercial real estate:      |                  |                              |           |           |           |   |           |        
|                             | Non-construction |                              | $         | 1,207,015 |           |   | $         | 989,146 |          
|                             | Construction     |                              |           | 1,005,206 |           |   |           | 531,612 |          
|                             | Mezzanine        |                              |           | 53,790    |           |   |           | 32,092  |          
|                             |                  |                              |           |           |           |   |           |         |          
|                             |                  | Total Commercial Real Estate |           |           | 2,266,011 |   |           |         | 1,552,850 | 
|Commercial                   |                  |                              | 98,621    |           |           |   | 87,631    |        
|Residential first mortgage   |                  |                              | 30,656    |           |           |   | 38,828    |        
|Home equity                  |                  |                              | 29,738    |           |           |   | 51,078    |        
|Student                      |                  |                              | 8,105     |           |           |   | 10,950    |        
|Medical finance and consumer |                  |                              | 640       |           |           |   | 632       |        
|                             |                  |                              |           |           |           |   |           |         |          
|Total                        |                  | $                            | 2,433,771 |           |           | $ | 1,741,969 |        
|                             |                  |                              |           |           |           |   |           |         |          

With regard to Corus concentration in commercial real estate lending, see
Managements Discussion and Analysis of Financial Statements for a breakdown of
loans by collateral type, geographic distribution, and loan size.

Changes in the allowance for loan losses were as follows:

|                          |  |      |        |      |  |      |        |   |  |   |        |  
|------------------------- |  | ---- | ------ | ---- |  | ---- | ------ | - |  | - | ------ | -
|YEARS ENDED DECEMBER 31   |  | 2003 |        | 2002 |  | 2001
|                          |  |      |        |      |  |     
|(dollars in thousands)    |  |      |        |      |  |      |        |   |  |   |        |  
|Balance at January 1      |  | $    | 36,629 |      |  | $    | 40,457 |   |  | $ | 39,601 |  
|Provision for loan losses |  |      |       |      |  |      |       |   |  |   |       |  
|Charge-offs               |  |      | (3,295 | )    |  |      | (6,057 | ) |  |   | (3,632 | )
|Recoveries                |  |      | 3,114  |      |  |      | 2,229  |   |  |   | 4,488  |  
|                          |  |      |        |      |  |      |        |   |  |   |        |  
|Balance at December 31    |  | $    | 36,448 |      |  | $    | 36,629 |   |  | $ | 40,457 |  
|                          |  |      |        |      |  |      |        |   |  |   |        |  

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CORUS BANKSHARES 2003 ANNUAL REPORT

At December 31, 2003 and 2002, Corus had impaired loans totaling $15.6 million
and $6.5 million, respectively, of which $17,000 and $178,000, respectively,
have been specifically reserved for in the allowance for loan losses. The
average balance of impaired loans during the year was $18.9 million in 2003 and
$8.6 million in 2002.

Nonaccrual loans totaled $7.9 million and $4.8 million as of December 31,
2003 and 2002, respectively. The interest foregone on these loans, net of cash
receipts, was $1.3 million and $1.1 million for 2003 and 2002, respectively.

Changes in the balance of loans to directors and principal officers of Corus
and its subsidiary were as follows:

|                             |  |   |         |  
|---------------------------- |  | - | ------- | -
|(dollars in thousands)       |  |   |         |  
|Balance at December 31, 2002 |  | $ | 14,406  |  
|New loans                    |  |   | 26,121  |  
|Repayments                   |  |   | (12,363 | )
|Reclassifications            |  |   | (2,043  | )
|                             |  |   |         |  
|Balance at December 31, 2003 |  | $ | 26,121  |  
|                             |  |   |         |  

These loans were made on substantially the same terms, including interest rates
and collateral, as those prevailing at the time for comparable transactions
with other customers. In the opinion of management, these loans do not involve
more than the normal risk of collection or possess other favorable features. As
of December 31, 2003, none of the above loans were over 90 days past due or
nonaccrual. Reclassifications reflect the balance of loans to individuals who
are no longer classified as directors or principal officers.

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CORUS BANKSHARES 2003 ANNUAL REPORT

NOTE 5: PREMISES AND EQUIPMENT

Premises and equipment were as follows:

|                                  |                              |      |        |        |  |   |        |        | 
|--------------------------------- | ---------------------------- | ---- | ------ | ------ |  | - | ------ | ------ | 
|DECEMBER 31                       |                              | 2003 |        | 2002  
|                                  |                              |      |        |       
|(dollars in thousands)            |                              |      |        |        |  |   |        |       
|Land and improvements             |                              | $    | 8,344  |        |  | $ | 8,344  |       
|Buildings and improvements        |                              |      | 27,956 |        |  |   | 28,200 |       
|Furniture and equipment           |                              |      | 18,828 |        |  |   | 18,002 |       
|                                  |                              |      |        |        |  |   |        |       
|                                  | Gross Premises and Equipment |      |        | 55,128 |  |   |        | 54,546 | 
|Less accumulated depreciation     |                              |      | 28,815 |        |  |   | 26,226 |       
|                                  |                              |      |        |        |  |   |        |       
|Total Premises and Equipment, Net |                              | $    | 26,313 |        |  | $ | 28,320 |       
|                                  |                              |      |        |        |  |   |        |       

Two banking locations occupy offices under long-term operating lease
agreements. Rent expense under these lease agreements totaled $206,000,
$344,000, and $361,000 for the years ended December 31, 2003, 2002, and 2001,
respectively. The decline in rent expense from 2002 to 2003 is due to the
reclassification of common area maintenance expenses, which were previously
included in rent expense. Rent expense for 2002 and 2001, excluding common area
maintenance costs, was $199,000 and $193,000 respectively.

Minimum fixed lease obligations, excluding taxes, insurance and other expenses
payable directly by Corus, for leases in effect at December 31, 2003, were as
follows:

|                         |  |   |       | 
|------------------------ |  | - | ----- | 
|YEARS ENDING DECEMBER 31
|                        
|(dollars in thousands)   |  |   |       | 
|2004                     |  | $ | 401   | 
|2005                     |  |   | 410   | 
|2006                     |  |   | 420   | 
|2007                     |  |   | 430   | 
|2008                     |  |   | 441   | 
|2009 and thereafter      |  |   | 2,037 | 
|                         |  |   |       | 
|Minimum Payments         |  | $ | 4,139 | 
|                         |  |   |       | 

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CORUS BANKSHARES 2003 ANNUAL REPORT

NOTE 6: TIME DEPOSITS

Interest-bearing deposits at December 31, 2003, include certificates of deposit
(CDs) totaling $1.0 billion, of which $743.9 million related to CDs in
amounts of $100,000 or more. At December 31, 2002, CDs totaled $655.2 million,
of which $406.1 million related to CDs in amounts of $100,000 or more. Interest
expense on CDs of $100,000 or more totaled $18.5 million and $22.9 million in
2003 and 2002, respectively.

At December 31, 2003, the scheduled maturities of all certificates of deposit
were as follows:

|                        |  |          |         |        |  |       |         |  |  |   |           | 
|----------------------- |  | -------- | ------- | ------ |  | ----- | ------- |  |  | - | --------- | 
|                        |  | BROKERED |         | RETAIL |  |       |         | 
|YEARS ENDED DECEMBER 31 |  | CDs      |         | CDs    |  | TOTAL
|                        |  |          |         |        |  |      
|(dollars in thousands)  |  |          |         |        |  |       |         |  |  |   |           | 
|2004                    |  | $        | 86,918  |        |  | $     | 366,314 |  |  | $ | 453,232   | 
|2005                    |  |          | 116,207 |        |  |       | 32,124  |  |  |   | 148,331   | 
|2006                    |  |          | 98,215  |        |  |       | 7,886   |  |  |   | 106,101   | 
|2007                    |  |          | 80,187  |        |  |       | 9,905   |  |  |   | 90,092    | 
|2008 and thereafter     |  |          | 215,304 |        |  |       | 5,862   |  |  |   | 221,166   | 
|                        |  |          |         |        |  |       |         |  |  |   |           | 
|Total                   |  | $        | 596,831 |        |  | $     | 422,091 |  |  | $ | 1,018,922 | 
|                        |  |          |         |        |  |       |         |  |  |   |           | 

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CORUS BANKSHARES 2003 ANNUAL REPORT

NOTE 7: TRUST PREFERRED SECURITIES

In 2003, Corus formed five wholly owned finance subsidiaries of the Company,
for the sole purpose of issuing and selling capital securities and using the
proceeds to purchase subordinated debentures issued by the Company. The Trust
Preferred securities issued by the Trusts mature 30 years after issuance,
although the securities are callable by Corus quarterly on or after the fifth
year subsequent to issuance, or earlier in the event of certain changes or
amendments to regulatory requirements or federal tax rules.

The following table summarizes the five Trust Preferred issuances:

|                       |  |            |  |            |  |              |  |                   |        |                   |  |                    |     |            |         |                   |  |   |       | 
|---------------------- |  | ---------- |  | ---------- |  | ------------ |  | ----------------- | ------ | ----------------- |  | ------------------ | --- | ---------- | ------- | ----------------- |  | - | ----- | 
|                       |  |            |  |            |  |              |  |                   |        |                   |  |                    |     | ISSUED AND |         | INTEREST AND FEES
|                       |  | ISSUE      |  | MATURITY   |  |              |  |                   |        | OUTSTANDING AT    |  | FOR THE YEAR ENDED
|                       |  | DATE       |  | DATE       |  | RATE         |  | DECEMBER 31, 2003 |        | DECEMBER 31, 2003
|                       |  |            |  |            |  |              |  |                   |        |                  
|(dollars in thousands) |  |            |  |            |  |              |  |                   |        |                   |  |                    |     |            |         |                   |  |   |       | 
|Trust I                |  | June 2003  |  | June 2033  |  | LIBOR+ 3.05% |  | $                 | 27,500 |                   |  | $                  | 605 |           
|Trust II               |  | June 2003  |  | June 2033  |  | LIBOR+ 3.10% |  |                   | 20,000 |                   |  |                    | 447 |           
|Trust III              |  | Sept. 2003 |  | Sept. 2033 |  | LIBOR+ 2.95% |  |                   | 45,000 |                   |  |                    | 548 |           
|Trust IV               |  | Nov. 2003  |  | Nov. 2033  |  | LIBOR+ 2.85% |  |                   | 30,000 |                   |  |                    | 128 |           
|Trust V                |  | Dec. 2003  |  | Dec. 2033  |  | LIBOR+ 2.85% |  |                   | 50,000 |                   |  |                    | 84  |           
|                       |  |            |  |            |  |              |  |                   |        |                   |  |                    |     |           
|Total                  |  |            |  |            |  |              |  |                   |        |                   |  |                    |     | $          | 172,500 |                   |  | $ | 1,812 | 
|                       |  |            |  |            |  |              |  |                   |        |                   |  |                    |     |            |         |                   |  |   |       | 

The Trust Preferred securities pay interest on a quarterly basis. The interest
rates reset quarterly. Corus has the ability to defer interest on the Trust
Preferred securities for a period not to exceed 20 consecutive quarters
subject, however, to certain restrictions with regard to Corus ability to
make, among other things, distributions to holders of Corus common stock. Corus
has not exercised this option. Combined issuance fees for the trusts totaled
$1.6 million and are being amortized over the 30-year lives of the securities.
Finally, Corus has, through various agreements, essentially fully and
unconditionally guaranteed payment of all amounts due under the Trust Preferred
securities.

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CORUS BANKSHARES 2003 ANNUAL REPORT NOTE 8: OTHER BORROWINGS On June 26, 2001, Corus entered into an agreement to borrow $70 million,
consisting of a term note in the amount of $50 million and a revolving note in
the amount of $20 million, both at an effective interest rate equal to LIBOR
plus 150 basis points, adjusted quarterly. Corus has extended the maturity date
on both notes to June 25, 2006, and either loan may be prepaid at any time
without premium or penalty. The term note requires quarterly repayments of $1
million beginning September 30, 2001, and the revolving note is payable upon
maturity. Interest is payable quarterly. In addition, a fee at an annual rate
of 1/4% of the average unused revolving note commitment is due quarterly. Among other restrictions, loan covenants require Corus to maintain
prescribed levels of capital, limit the level of nonperforming loans relative
to capital, and maintain a minimum ratio of the allowance for loan losses to
total loans. Corus is in compliance with all loan covenants as of December 31,
2003. The debt is secured by 100% of the common stock of the subsidiary bank. Outstanding balances, and interest and fees for these notes were as follows: BALANCE OUTSTANDING
    
    INTEREST AND FEES FOR THEAT DECEMBER 31
    
    YEARS ENDED DECEMBER 312003
    
    2002
    
    2003
    
    2002(dollars in thousands)Term note
    
    $
    35,000
    
    
    $
    44,000
    
    
    $
    1,068
    
    
    $
    1,601Revolving note
    
    
    
    
    
    
    1,375
    
    
    
    89
    
    
    
    172Other
    
    
    1,403
    
    
    
    2,735
    
    
    
    7
    
    
    
    22Total
    
    $
    36,403
    
    
    $
    48,110
    
    
    $
    1,164
    
    
    $
    1,795
 NOTE 9: INCOME TAXES The components of income tax expense were as follows: YEARS ENDED DECEMBER 31
    
    2003
    
    2002
    
    2001(dollars in thousands)Current tax expense
    
    $
    34,305
    
    
    $
    22,947
    
    
    $
    28,077Deferred federal expense (benefit)
    
    
    (3,760
    )
    
    
    1,633
    
    
    
    65Deferred federal benefit  SFAS No. 123 adoption
    
    
    (1,141
    )
    
    
    
    
    
    
    Income Tax Provision
    
    $
    29,404
    
    
    $
    24,580
    
    
    $
    28,142
 | 26 |




---



##### 



CORUS BANKSHARES 2003 ANNUAL REPORT A reconciliation of the statutory federal income tax rate to the effective rate
is as follows: YEARS ENDED DECEMBER 31
    
    2003
    
    2002
    
    2001Statutory federal income tax rate
    
    
    35.0
    %
    
    
    35.0
    %
    
    
    35.0
    %Dividends received deduction
    
    
    (1.5
    )
    
    
    (1.6
    )
    
    
    (1.3
    )Tax-exempt income
    
    
    (0.1
    )
    
    
    (0.1
    )
    
    
    (0.3
    )Goodwill amortization
    
    
    
    
    
    
    
    
    
    
    0.4Other, net
    
    
    0.1
    
    
    
    
    
    
    
    0.4Effective Rate
    
    
    33.5
    %
    
    
    33.3
    %
    
    
    34.2
    %
 Deferred taxes were recorded based upon differences between the financial
statement and tax basis of assets and liabilities. The following deferred taxes
were recorded: DECEMBER 31
    
    2003
    
    2002(dollars in thousands)DEFERRED TAX ASSETSAllowance for loan losses
    
    $
    11,842
    
    
    $
    11,919Deferred compensation
    
    
    4,405
    
    
    
    3,413Other than temporary impairment
    
    
    3,137
    
    
    
    Stock options
    
    
    1,984
    
    
    
    Other deferred tax assets
    
    
    266
    
    
    
    384Gross Deferred Tax Assets
    
    
    21,634
    
    
    
    15,716DEFERRED TAX LIABILITIESUnrealized securities gains
    
    
    (33,228
    )
    
    
    (18,027
    )Mark-to-market adjustments on non-hedge derivatives
    
    
    (1,947
    )
    
    
    (1,692
    )Gains on nonmonetary stock transactions
    
    
    (1,284
    )
    
    
    (319
    )Purchase accounting adjustments
    
    
    (932
    )
    
    
    (1,061
    )Pension
    
    
    (694
    )
    
    
    (830
    )Deferred loan fees and discounts
    
    
    (406
    )
    
    
    (373
    )Other deferred tax liabilities
    
    
    (626
    )
    
    
    (597
    )Gross Deferred Tax Liabilities
    
    
    (39,117
    )
    
    
    (22,899
    )Net Deferred Tax Liability
    
    $
    (17,483
    )
    
    $
    (7,183
    )
 Management believes that the gross deferred tax asset of $21.6 million at
December 31, 2003, could be realized through the carryback of taxable income
against prior years. | 27 |




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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT NOTE 10: EMPLOYEE BENEFIT PLANS The following reflects the disclosure requirements set forth by SFAS No. 132,
Employers Disclosures about Pensions and Other Postretirement Benefits. Corus maintains a noncontributory defined benefit pension plan (Retirement
Income Plan and Trust) and a defined contribution plan (Employees Savings Plan
and Trust). Expense (income) for each of the plans was as follows: YEARS ENDED DECEMBER 31
    
    2003
    
    2002
    
    2001(dollars in thousands)Retirement Income Plan and Trust
    
    $
    1,054
    
    
    $
    158
    
    
    $
    (453
    )Employees Savings Plan and Trust
    
    
    206
    
    
    
    190
    
    
    
    182Total
    
    $
    1,260
    
    
    $
    348
    
    
    $
    (271
    )
 Pension Plan Substantially all employees are eligible to participate in a noncontributory
defined benefit plan after meeting age and service requirements. Pension
benefits are based on length of service and compensation. Funding for the plan
is based on actuarial cost methods. No contributions were made during the three
years ended December 31, 2003. Pension plan assets are primarily invested in
common stocks. Net periodic benefit cost/(income) was comprised of the following: YEARS ENDED DECEMBER 31
    
    2003
    
    2002
    
    2001(dollars in thousands)Service cost
    
    $
    751
    
    
    $
    615
    
    
    $
    638Interest cost
    
    
    1,271
    
    
    
    1,177
    
    
    
    1,115Actual (gain)/loss on plan assets
    
    
    (4,752
    )
    
    
    3,941
    
    
    
    1,981Amortization of transition asset
    
    
    
    
    
    
    
    
    
    
    (202
    )Net amortization and deferral
    
    
    3,784
    
    
    
    (5,575
    )
    
    
    (3,985
    )Net Periodic Benefit Cost/(Income)
    
    $
    1,054
    
    
    $
    158
    
    
    $
    (453
    )
 The accumulated benefit obligation for the plan was $16.0 million and $15.6
million at December 31, 2003, and 2002, respectively. | 28 |




---



##### 



CORUS BANKSHARES 2003 ANNUAL REPORT Reconciliations of the plans projected benefit obligations and fair value of
plan assets as well as the funded status to the amounts recognized in Corus
statements of financial position follow: Change in Projected Benefit Obligation 2003
    
    2002(dollars in thousands)Benefit
obligation at January 1
    
    $
    19,312
    
    
    $
    17,319Service cost
    
    
    751
    
    
    
    615Interest cost
    
    
    1,271
    
    
    
    1,177Actuarial loss
    
    
    146
    
    
    
    1,077Benefits paid
    
    
    (927
    )
    
    
    (876
    )Benefit Obligation at December 31
    
    $
    20,553
    
    
    $
    19,312
 Change in Fair Value of Plan Assets 2003
    
    2002(dollars in thousands)Fair value of plan assets at January 1
    
    $
    16,121
    
    
    $
    20,938Actual gain/(loss) on plan assets
    
    
    4,752
    
    
    
    (3,941
    )Benefits paid
    
    
    (927
    )
    
    
    (876
    )Fair Value of Plan Assets at December 31
    
    $
    19,946
    
    
    $
    16,121
 Funded Status DECEMBER 31
    
    2003
    
    2002(dollars in thousands)Funded status
    
    $
    (607
    )
    
    $
    (3,191
    )Unrecognized actuarial loss
    
    
    2,589
    
    
    
    6,227Prepaid Benefit Cost
    
    $
    1,982
    
    
    $
    3,036
 The prepaid benefit cost represents the amount recognized in the Statement of
Financial Position as of December 31. | 29 |




---



##### 



CORUS BANKSHARES 2003 ANNUAL REPORT The following net periodic assumptions were used in accounting for the pension
plan: Benefit Obligation DECEMBER 31
    
    2003
    
    2002Discount rate
    
    
    6.75
    %
    
    
    6.75
    %Rate of compensation increase
    
    
    5.00
    %
    
    
    5.00
    %
 Net Periodic Benefit Cost DECEMBER 31
    
    2003
    
    2002Discount rate
    
    
    6.75
    %
    
    
    7.00
    %Expected return on plan assets
    
    
    8.00
    %
    
    
    8.00
    %Rate of compensation increase
    
    
    5.00
    %
    
    
    5.00
    %
 Plan assets are invested entirely in diversified equity securities and it is
managements plan to keep them invested in a diversified pool of equities going
forward. Managements investment horizon is considered long term and, as such,
long-term equity returns were studied using historical data over rolling 10-,
15- and 20-year periods going back until the early 20th century. Based on its
review of these historical returns, management determined that an expected
long-term rate of return of 8.00% was reasonable. Plan Assets Corus pension plan weighted average allocations at December 31, 2003 and 2002,
by asset category were as follows: PLAN ASSETS AT DECEMBER 31ASSET CATEGORY
    
    2003
    
    2002Equity securities
    
    
    99
    %
    
    
    99
    %Other
    
    
    1
    %
    
    
    1
    %Total
    
    
    100
    %
    
    
    100
    %
 The plan trustees intentions are to invest the majority of plan assets in a
portfolio of diversified domestic equity securities with the remainder in cash
to meet the immediate needs of the plan. The plan trustees believe that over
the long term, which is thought to be the proper horizon for this asset, equity
securities will outperform all other investment alternatives. This is based on
careful study of historical returns of various asset classes. The plan trustees
are prepared to accept some volatility in specific annual returns during
periods when equity securities under-perform the broader market, however, they
firmly believe that, over the long run, such a strategy will perform better
than a more diversified asset allocation strategy. Contributions Corus expects to make no contributions to its pension plan in 2004. | 30 |




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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT Measurement Date The measurement date for the 2003 fiscal year is December 31, 2003. Asset
values are determined as of this date. Pension liabilities are valued at the
beginning of the year and adjusted to December 31. The end of the year discount
rate is used to determine the beginning of year liability. Savings Plan Most employees are eligible to become participants of Corus Employees Savings
Plan and Trust. Corus matching contributions to this plan are discretionary.
For the years ended December 31, 2003, 2002, and 2001, Corus matched 20% of
participants contributions, up to a maximum of $1,500. NOTE 11: DERIVATIVES As of January 1, 2001, Corus implemented SFAS No. 133, as amended. This
statement establishes accounting and reporting standards requiring that every
derivative instrument be recorded in the balance sheet as either an asset or
liability measured at its fair value. Special accounting for qualifying hedges
(hedge accounting) allows a derivatives gains and losses to be either offset
by the change in fair value of the hedged item or deferred through recognition
in a component of other comprehensive income. Those derivatives that do not
qualify for hedge accounting are required to be marked to market with the
impact of the market adjustment recorded directly to income. Corus utilizes interest rate swaps (to effectively convert fixed-rate
loans and brokered CDs to floating rate) and interest rate basis swaps (to
effectively convert LIBOR-based floating rate loans to Treasury-based
floating-rate loans) to reduce interest rate risk by improving the balance
between rate sensitive assets and liabilities. While these derivatives provide
the desired economic hedge to interest rate fluctuations, they do not all meet
the strict criteria required to qualify for hedge accounting. During 2003,
2002, and 2001 all but one of the fixed-to-floating swaps qualified as fair
value hedges and received hedge accounting treatment. In addition, the
Companys basis swaps also do not meet the strict criteria required to qualify
for hedge accounting. In 2003, 2002, and 2001 Corus recorded net income related to SFAS No. 133
of $593,000, $3.0 million, and $1.9 million, respectively. The 2001 income
included $1.1 million from activity during 2001 as well as a transition
adjustment of $828,000 related to the initial adoption. The income related to
both hedge and non-hedge derivatives is as follows: INCOME/(LOSS)INCOME STATEMENTYEARS ENDED DECEMBER 31
    
    CLASSIFICATION
    
    2003
    
    2002
    
    2001(dollars in thousands)Fair value hedge:Fixed-to-floating swaps
    
    Interest Income
    
    $
    33
    
    
    $
    (85
    )
    
    $
    19Non-hedge:Fixed-to-floating swaps
    
    Noninterest Income
    
    
    37
    
    
    
    (31
    )
    
    
    (67
    )Basis swaps
    
    Noninterest Income
    
    
    523
    
    
    
    3,150
    
    
    
    1,984Total Non-hedge
    
    
    
    
    560
    
    
    
    3,119
    
    
    
    1,917Total Derivative Gain/(Loss)
    
    
    
    $
    593
    
    
    $
    3,034
    
    
    $
    1,936
 The counterparties to these instruments are major financial institutions with
credit ratings of A or better. | 31 |




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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT NOTE 12: FINANCIAL INSTRUMENTS In the normal course of business, Corus invests in various financial assets,
incurs various financial liabilities and enters into agreements involving
unrecognized financial instruments (consisting of standby letters of credit,
commitment letters, and unused lines of credit). The fair value estimates of
financial instruments presented below are not necessarily indicative of the
amounts Corus might receive or pay in actual market transactions. Potential
taxes and other transaction costs have also not been considered in estimating
fair value. As some of Corus assets and liabilities are not considered
financial instruments, the disclosures below do not reflect the fair value of
Corus as a whole. Corus had the following financial instruments: 2003
    
    2002CARRYING
    
    FAIR
    
    CARRYING
    
    FAIRDECEMBER 31
    
    AMOUNT
    
    VALUE
    
    AMOUNT
    
    VALUE(dollars in thousands)FINANCIAL ASSETSCash and cash equivalents
    
    $
    745,524
    
    
    $
    745,524
    
    
    $
    431,660
    
    
    $
    431,660Securities available-for-sale
    
    
    432,906
    
    
    
    432,906
    
    
    
    420,644
    
    
    
    420,644Securities held-to-maturity
    
    
    11,744
    
    
    
    11,802
    
    
    
    6,687
    
    
    
    6,767Loans, net
    
    
    2,397,323
    
    
    
    2,414,258
    
    
    
    1,705,340
    
    
    
    1,719,285Accrued interest receivable
    
    
    12,795
    
    
    
    12,795
    
    
    
    10,376
    
    
    
    10,376Other assets
    
    
    5,657
    
    
    
    5,657
    
    
    
    5,134
    
    
    
    5,134FINANCIAL LIABILITIESDeposits without a stated maturity
    
    $
    1,827,480
    
    
    $
    1,827,480
    
    
    $
    1,404,543
    
    
    $
    1,404,543Certificates of deposit
    
    
    1,018,922
    
    
    
    1,026,576
    
    
    
    655,230
    
    
    
    673,235Long-term debt  Trust Preferred securities
    
    
    172,500
    
    
    
    172,500
    
    
    
    
    
    
    
    Other borrowings
    
    
    36,403
    
    
    
    36,403
    
    
    
    48,110
    
    
    
    48,110Accrued interest payable
    
    
    3,627
    
    
    
    3,627
    
    
    
    5,172
    
    
    
    5,172Other liabilities
    
    
    60
    
    
    
    60
    
    
    
    98
    
    
    
    98UNRECOGNIZED FINANCIAL LIABILITIESStandby letters of credit
    
    $
    367
    
    
    $
    367
    
    
    $
    415
    
    
    $
    415Commitment letters
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Unused lines of credit
    
    
    
    
    
    
    947
    
    
    
    
    
    
    
    845
 Cash and cash equivalentsare short-term in nature and, as such, fair value
approximates carrying value. Securitiesconsist primarily of common stocks, corporate debt securities and
investments in U.S. government agencies. Fair values are based on quoted market
prices, when available. Non-quoted instruments are valued based on discounted
cash flows using current interest rates for similar securities. | 32 |




---



##### 



CORUS BANKSHARES 2003 ANNUAL REPORT Loansare valued based on type of loan. The fair value of variable-rate loans
that reprice frequently is assumed to approximate carrying value. The fair
value of fixed-rate loans is based on the discounted amount of scheduled cash
flows. The discount rate used is equal to the current rate of the appropriate
index plus the average spread on the existing portfolio. Carrying value and
fair value include the market value of both hedged loans and the related
interest rate swaps. The total hedge ineffectiveness reflected in these
balances was immaterial at December 31, 2003. The fair values of interest rate
swaps are based on either quoted market or dealer prices. Accrued interest receivableis short-term in nature and, as such, fair value
approximates carrying value. Other assetsreflects the fair value of basis swaps that do not qualify for
hedge accounting. As these are marked to market on a quarterly basis, carrying
value equals fair value. The fair values of basis swaps are based on either
quoted market or dealer prices. Deposits without a stated maturityare assumed to approximate carrying value. Certificates of depositfair values are based on discounted contractual cash
flows. Discount rates are selected using the rates that were offered at
year-end. Long-term debt  Trust Preferred securitiesreprice quarterly and, as such,
fair value approximates carrying value. Other borrowingsare either short-term in nature or reprice quarterly and, as
such, fair value approximates carrying value. Accrued interest payableis short-term in nature and, as such, fair value
approximates carrying value. Other liabilitiesreflects the fair value of interest rate swaps that do not
qualify for hedge accounting. As these are marked to market on a quarterly
basis, carrying value equals fair value. The fair values of interest rate
swaps are based on either quoted market or dealer prices. Unrecognized financial liabilitiesare valued based on estimated fees currently
charged to enter similar agreements, taking into account the remaining terms of
the agreement and the present creditworthiness of the counterparties. Carrying
value represents deferred fees arising from the unrecognized financial
instruments. | 33 |




---



##### 



CORUS BANKSHARES 2003 ANNUAL REPORT The following is additional information related to the unrecognized financial
instruments: DECEMBER 31
    
    2003
    
    2002(dollars in thousands)STANDBY LETTERS OF CREDITCommercial real estate:Non-construction
    
    $
    10,502
    
    
    $
    20,682Construction
    
    
    
    
    
    
    Mezzanine
    
    
    
    
    
    
    Commercial
    
    
    2,159
    
    
    
    3,190Home equity
    
    
    
    
    
    
    Consumer
    
    
    
    
    
    
    Total Standby Letters of Credit
    
    
    12,661
    
    
    
    23,872COMMITMENT LETTERS OUTSTANDINGCommercial real estate:Non-construction
    
    
    
    
    
    
    14,000Construction
    
    
    375,865
    
    
    
    138,164Mezzanine
    
    
    
    
    
    
    Commercial
    
    
    
    
    
    
    Home equity
    
    
    
    
    
    
    Consumer
    
    
    
    
    
    
    Total Commitment Letters
    
    
    375,865
    
    
    
    152,164UNUSED COMMITMENTS UNDER LINES OF CREDITCommercial real estate:Non-construction
    
    
    73,399
    
    
    
    55,575Construction
    
    
    1,086,169
    
    
    
    991,908Mezzanine
    
    
    8,547
    
    
    
    3,326Commercial
    
    
    27,909
    
    
    
    13,434Home equity
    
    
    11,287
    
    
    
    15,104Consumer
    
    
    674
    
    
    
    693Total Unused Lines of Credit
    
    
    1,207,985
    
    
    
    1,080,040TOTAL COMMITMENTSCommercial real estate:Non-construction
    
    
    83,901
    
    
    
    90,257Construction
    
    
    1,462,034
    
    
    
    1,130,072Mezzanine
    
    
    8,547
    
    
    
    3,326Commercial
    
    
    
    
    
    
    30,06816,624Home equity
    
    
    11,287
    
    
    
    15,104Consumer
    
    
    674
    
    
    
    693Total Commitments Outstanding
    
    $
    1,596,511
    
    
    $
    1,256,076
 | 34 |




---



##### 



CORUS BANKSHARES 2003 ANNUAL REPORT

NOTE 13: LEGAL AND REGULATORY PROCEEDINGS

Corus is involved in various legal and regulatory proceedings involving matters
that arose in the ordinary course of business. The consequences of these
proceedings are not presently determinable but, in the opinion of management,
these proceedings will not have a material effect on the results of operations,
financial position, liquidity, or capital resources.

NOTE 14: SHAREHOLDERS EQUITY

Shareholders Equity and Dividend Restrictions

The payment of dividends to Corus by its subsidiary bank is subject to federal
regulatory limitations. National banks are generally allowed to pay dividends
to the extent of net income for the current and prior two years less dividends
paid, without regulatory approval. The payment of dividends by any bank may
also be affected by other factors, such as the maintenance of adequate capital.
Corus subsidiary bank was considered well capitalized as of December 31, 2003.
Corus capital category is determined solely for the purpose of applying prompt
corrective action and that capital category may not constitute an accurate
representation of Corus overall financial condition or prospects. At December
31, 2003, the total amount of the subsidiary banks retained earnings available
for dividends without prior regulatory approval and maintaining
well-capitalized status was $102.6 million.

Stock Option Plan

Options to purchase Corus common stock have been granted to employees under
the 1999 Stock Option Plan at prices equal to the fair market value of the
underlying stock on the dates the options were granted. The options vest 20%
per year, over a five-year period, and expire in 10 years. At December 31,
2003, there were 606,000 shares available for grant.

Changes in stock options were as follows:

Stock Options

|                                |  |           |       |          |  |           |       |          |  |           |       |          |  |   |       |  |  |          |     |   |  |   |       | 
|------------------------------- |  | --------- | ----- | -------- |  | --------- | ----- | -------- |  | --------- | ----- | -------- |  | - | ----- |  |  | -------- | --- | - |  | - | ----- | 
|                                |  | 2003      |       | 2002     |  | 2001     
|                                |  |           |       |          |  |          
|                                |  |           |       |          |  | WEIGHTED  |       |          |  |           |       | WEIGHTED |  |   |       |  |  | WEIGHTED
|                                |  |           |       |          |  | AVERAGE   |       |          |  |           |       | AVERAGE  |  |   |       |  |  | AVERAGE 
|                                |  | NUMBER    |       | EXERCISE |  | NUMBER    |       | EXERCISE |  | NUMBER    |       | EXERCISE
|YEARS ENDED DECEMBER 31         |  | OF SHARES |       | PRICE    |  | OF SHARES |       | PRICE    |  | OF SHARES |       | PRICE   
|                                |  |           |       |          |  |           |       |          |  |           |       |         
|(number of shares in thousands) |  |           |       |          |  |           |       |          |  |           |       |         
|Beginning options outstanding   |  |           | 1,174 |          |  | $         | 18.35 |          |  |           | 978   |          |  | $ | 16.72 |  |  |          | 836 |   |  | $ | 14.71 | 
|Granted                         |  |           | 236   |          |  |           | 20.99 |          |  |           | 223   |          |  |   | 25.01 |  |  |          | 206 |   |  |   | 24.58 | 
|Exercised/Settlements           |  |           | (51   | )        |  |           | 16.75 |          |  |           | (12   | )        |  |   | 16.02 |  |  |          | (43 | ) |  |   | 15.03 | 
|Forfeited/Expired               |  |           |      |          |  |           |      |          |  |           | (15   | )        |  |   | 19.78 |  |  |          | (21 | ) |  |   | 14.94 | 
|                                |  |           |       |          |  |           |       |          |  |           |       |          |  |   |       |  |  |          |     |   |  |   |       | 
|Ending Options Outstanding      |  |           | 1,359 |          |  | $         | 18.88 |          |  |           | 1,174 |          |  | $ | 18.35 |  |  |          | 978 |   |  | $ | 16.72 | 
|                                |  |           |       |          |  |           |       |          |  |           |       |          |  |   |       |  |  |          |     |   |  |   |       | 
|Exercisable at December 31      |  |           | 654   |          |  | $         | 16.71 |          |  |           | 479   |          |  | $ | 15.84 |  |  |          | 312 |   |  | $ | 15.02 | 
|                                |  |           |       |          |  |           |       |          |  |           |       |          |  |   |       |  |  |          |     |   |  |   |       | 

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CORUS BANKSHARES 2003 ANNUAL REPORT

The following table summarizes information about stock options outstanding at
December 31, 2003.

|                                 |  |                     |       |                     |  |                |  |             |       |                |  |  |     |  |  |   |       |  |  | 
|-------------------------------- |  | ------------------- | ----- | ------------------- |  | -------------- |  | ----------- | ----- | -------------- |  |  | --- |  |  | - | ----- |  |  | 
|                                 |  | OPTIONS OUTSTANDING |       | OPTIONS EXERCISABLE
|                                 |  |                     |       |                    
|                                 |  | NUMBER              |       | WEIGHTED AVERAGE    |  | WEIGHTED       |  | NUMBER      |       | WEIGHTED      
|RANGE OF                         |  | OUTSTANDING         |       | REMAINING           |  | AVERAGE        |  | EXERCISABLE |       | AVERAGE       
|EXERCISE PRICES                  |  | AT 12/31/03         |       | CONTRACTUAL LIFE    |  | EXERCISE PRICE |  | AT 12/31/03 |       | EXERCISE PRICE
|                                 |  |                     |       |                     |  |                |  |             |       |               
|(number of options in thousands) |  |                     |       |                     |  |                |  |             |       |               
|$9  $14                         |  |                     | 183   |                     |  | 6.1 years      |  | $           | 12.47 |                |  |  | 104 |  |  | $ | 12.45 | 
|$15$19                          |  |                     | 532   |                     |  | 5.4 years      |  |             | 15.60 |                |  |  | 438 |  |  |   | 15.66 | 
|$20 $26                         |  |                     | 644   |                     |  | 8.4 years      |  |             | 23.41 |                |  |  | 112 |  |  |   | 24.73 | 
|                                 |  |                     |       |                     |  |                |  |             |       |                |  |  |     |  |  |   |       | 
|$9 $26                          |  |                     | 1,359 |                     |  | 6.9 years      |  | $           | 18.88 |                |  |  | 654 |  |  | $ | 16.71 | 
|                                 |  |                     |       |                     |  |                |  |             |       |                |  |  |     |  |  |   |       | 

Regulatory Capital

Corus and its subsidiary bank are required to maintain certain capital ratios.
Failure to maintain these ratios would severely limit their ability to pay
dividends, support growth, and repurchase shares and would increase the amount
of FDIC insurance premiums. At December 31, 2003 and 2002, Corus and its
subsidiary bank were categorized as well capitalized. Corus capital category
is determined solely for the purpose of applying prompt corrective action and
that capital category may not constitute an accurate representation of Corus
overall financial condition or prospects. There have been no events since
December 31, 2003, that management believes would have changed that category.
The minimum ratios to be well capitalized and Corus and its subsidiary banks
actual regulatory capital and ratios were as follows:

Regulatory Capital and Ratios

|                                    |                  |  |          |         |            |  |            |      |       |  |        |         |       |  |     |      |   |  |   |         |  |  |      |      |  
|----------------------------------- | ---------------- |  | -------- | ------- | ---------- |  | ---------- | ---- | ----- |  | ------ | ------- | ----- |  | --- | ---- | - |  | - | ------- |  |  | ---- | ---- | -
|                                    |                  |  |          |         |            |  |            |      |       |  | TIER 1 |         | TOTAL
|                                    |                  |  | TIER 1   |         | RISK-BASED |  | RISK-BASED
|                                    |                  |  | LEVERAGE |         | CAPITAL    |  | CAPITAL   
|                                    |                  |  |          |         |            |  |           
|                                    |                  |  | AMOUNT   |         | RATIO      |  | AMOUNT     |      | RATIO |  | AMOUNT |         | RATIO
|                                    |                  |  |          |         |            |  |            |      |       |  |        |         |      
|(dollars in thousands)              |                  |  |          |         |            |  |            |      |       |  |        |        
|Minimum ratios for well-capitalized |                  |  |          |         |            |  | 5.0        | %    |       |  |        |         |       |  | 6.0 | %    |   |  |   |         |  |  | 10.0 | %   
|December 31, 2003:                  |                  |  |          |         |            |  |            |      |       |  |        |         |       |  |     |      |   |  |   |         |  |  |      |     
|                                    | Corus Bankshares |  | $        | 639,931 |            |  |            | 18.7 | %     |  | $      | 639,931 |       |  |     | 17.9 | % |  | $ | 730,829 |  |  |      | 20.5 | %
|                                    | Subsidiary bank  |  |          | 573,966 |            |  |            | 17.2 |       |  |        | 573,966 |       |  |     | 16.7 |   |  |   | 610,414 |  |  |      | 17.7 |  
|December 31, 2002:                  |                  |  |          |         |            |  |            |      |       |  |        |         |       |  |     |      |   |  |   |         |  |  |      |     
|                                    | Corus Bankshares |  | $        | 444,039 |            |  |            | 17.3 | %     |  | $      | 444,039 |       |  |     | 16.8 | % |  | $ | 497,916 |  |  |      | 18.9 | %
|                                    | Subsidiary bank  |  |          | 382,915 |            |  |            | 15.5 |       |  |        | 382,915 |       |  |     | 15.2 |   |  |   | 414,430 |  |  |      | 16.5 |  

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CORUS BANKSHARES 2003 ANNUAL REPORT

NOTE 15: NET INCOME PER SHARE (1)

Net income per share was calculated as follows :

|                                                    |                                   |                                            |        |        |        |      |        |        |        |   |        |        |        | 
|--------------------------------------------------- | --------------------------------- | ------------------------------------------ | ------ | ------ | ------ | ---- | ------ | ------ | ------ | - | ------ | ------ | ------ | 
|YEARS ENDED DECEMBER 31                             |                                   | 2003                                       |        | 2002   |        | 2001
|                                                    |                                   |                                            |        |        |        |     
|(in thousands, except per share data)               |                                   |                                            |        |        |        |     
|Denominator for basic earnings per share:           |                                   |                                            |        |        |        |      |        |        |        |   |        |       
|                                                    | average common shares outstanding |                                            |        | 28,102 |        |      |        | 28,298 |        |   |        | 28,292 |       
|Dilutive common stock options                       |                                   |                                            | 601    |        |        |      | 292    |        |        |   | 327    |       
|                                                    |                                   |                                            |        |        |        |      |        |        |        |   |        |        |       
|                                                    |                                   | Denominator for Diluted Earnings Per Share |        |        | 28,703 |      |        |        | 28,590 |   |        |        | 28,619 | 
|                                                    |                                   |                                            |        |        |        |      |        |        |        |   |        |        |       
|Numerator: Net income attributable to common shares |                                   | $                                          | 58,410 |        |        | $    | 49,314 |        |        | $ | 54,183 |       
|                                                    |                                   |                                            |        |        |        |      |        |        |        |   |        |        |       
|Net income per share:                               |                                   |                                            |        |        |        |      |        |        |        |   |        |       
|                                                    | Basic                             |                                            | $      | 2.08   |        |      | $      | 1.74   |        |   | $      | 1.92   |       
|                                                    | Diluted                           |                                            |        | 2.04   |        |      |        | 1.72   |        |   |        | 1.89   |       

(1)All amounts have been restated to reflect a 100% stock dividend on 12/15/03.

NOTE 16: SEGMENT REPORTING

The following reflects the disclosure requirements set forth by SFAS No. 131,
Disclosures about Segments of an Enterprise and Related Information. For
purposes of this statement, management has determined that Commercial Lending,
Consumer Lending, Retail Banking and Corporate Support are the primary
operating segments of the Company.

Commercial Lending derives its revenues primarily from interest and fees on
commercial real estate loans, including first mortgage term loans, construction
loans, and mezzanine loans. Revenues also include loans to customers in the
check cashing industry.

Consumer Lending is comprised of home equity, residential mortgage,
student, medical finance, and other loans to individual borrowers. Revenues of
this segment are from interest and fees on the loans.

The Retail Banking segment provides general banking services such as
checking, savings, money market, and time deposit accounts as well as a variety
of other services. Revenues for Retail Banking are derived from credit for
funds provided to the other segments, as well as fees related to banking
services.

Corporate Support includes the net effect of support units after revenue
and expense allocations, treasury management, and other corporate activities.
Revenues primarily relate to dividends from the Companys investment in the
common stocks of financial industry companies and the net effect of transfer
pricing related to loan and deposit balances. In addition, revenues include
gains/(losses) on equity securities. Corporate Support also incorporates the
difference between the Companys reported provision for credit losses, which is
determined in accordance with generally accepted accounting principles, and the
credit provisions allocated to the reportable business units.

Business line results are derived from the Companys business unit
profitability reporting system by specifically attributing assets, deposits,
and other liabilities and their related income or expense. Funds transfer
pricing methodologies are utilized to allocate a cost for funds used or credit
for funds provided to all business line assets and

| 37 |



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CORUS BANKSHARES 2003 ANNUAL REPORT

liabilities. The provision for credit losses recorded by each operating
segment is based on the net charge-offs incurred by each line of business.
Income and expenses directly related to each business line, including fees,
service charges, salaries and benefits, and other direct expenses are accounted
for within each segments financial results in a manner similar to the
consolidated financial statements. Expenses incurred by centrally managed
operations units that directly support business lines operations are charged
to the business lines based on standard unit costs and volume measurements.
Capital is allocated to each line of business, including both on- and
off-balance-sheet items, based on its inherent risks, including credit,
operational, and other business risks. Designations, assignments, and
allocations may change from time to time as management accounting systems are
enhanced or product lines change.

The following is a summary of significant segment information as required by
SFAS No. 131:

|                       |  |            |           |          |  |         |        |           |  |              |           |              |  |   |         |  |  |        |            |   |  |   |           | 
|---------------------- |  | ---------- | --------- | -------- |  | ------- | ------ | --------- |  | ------------ | --------- | ------------ |  | - | ------- |  |  | ------ | ---------- | - |  | - | --------- | 
|                       |  |            |           |          |  |         |        |           |  |              |           |              |  |   |         |  |  | INTER- |            |   |  |  
|YEAR ENDED             |  | COMMERCIAL |           | CONSUMER |  | RETAIL  |        | CORPORATE |  | SEGMENT      |           |              |  |  
|DECEMBER 31, 2003      |  | LENDING    |           | LENDING  |  | BANKING |        | SUPPORT   |  | ELIMINATIONS |           | CONSOLIDATED
|                       |  |            |           |          |  |         |        |           |  |              |           |             
|(dollars in thousands) |  |            |           |          |  |         |        |           |  |              |           |             
|Total Revenues(1)      |  | $          | 82,430    |          |  | $       | 4,481  |           |  | $            | 41,297    |              |  | $ | 12,139  |  |  | $      |           |   |  | $ | 140,347   | 
|Net Income             |  |            | 37,600    |          |  |         | 1,317  |           |  |              | 13,047    |              |  |   | 6,446   |  |  |        |           |   |  |   | 58,410    | 
|Total Average Assets   |  |            | 2,191,251 |          |  |         | 80,720 |           |  |              | 2,492,752 |              |  |   | 199,685 |  |  |        | (1,980,387 | ) |  |   | 2,984,021 | 
|End of Period Goodwill |  |            |          |          |  |         |       |           |  |              | 4,523     |              |  |   |        |  |  |        |           |   |  |   | 4,523     | 

|                       |  |            |           |          |  |         |         |           |  |              |           |              |  |   |         |  |  |        |            |   |  |   |           | 
|---------------------- |  | ---------- | --------- | -------- |  | ------- | ------- | --------- |  | ------------ | --------- | ------------ |  | - | ------- |  |  | ------ | ---------- | - |  | - | --------- | 
|                       |  |            |           |          |  |         |         |           |  |              |           |              |  |   |         |  |  | INTER- |            |   |  |  
|YEAR ENDED             |  | COMMERCIAL |           | CONSUMER |  | RETAIL  |         | CORPORATE |  | SEGMENT      |           |              |  |  
|DECEMBER 31, 2002      |  | LENDING    |           | LENDING  |  | BANKING |         | SUPPORT   |  | ELIMINATIONS |           | CONSOLIDATED
|                       |  |            |           |          |  |         |         |           |  |              |           |             
|(dollars in thousands) |  |            |           |          |  |         |         |           |  |              |           |             
|Total Revenues(1)      |  | $          | 59,403    |          |  | $       | 7,453   |           |  | $            | 37,164    |              |  | $ | 17,346  |  |  | $      |           |   |  | $ | 121,366   | 
|Net Income             |  |            | 25,045    |          |  |         | 2,003   |           |  |              | 10,588    |              |  |   | 11,678  |  |  |        |           |   |  |   | 49,314    | 
|Total Average Assets   |  |            | 1,681,921 |          |  |         | 120,963 |           |  |              | 2,168,877 |              |  |   | 373,341 |  |  |        | (1,705,673 | ) |  |   | 2,639,429 | 
|End of Period Goodwill |  |            |          |          |  |         |        |           |  |              | 4,523     |              |  |   |        |  |  |        |           |   |  |   | 4,523     | 

|                       |  |            |           |          |  |         |         |           |  |              |           |              |  |   |         |  |  |        |            |   |  |   |           | 
|---------------------- |  | ---------- | --------- | -------- |  | ------- | ------- | --------- |  | ------------ | --------- | ------------ |  | - | ------- |  |  | ------ | ---------- | - |  | - | --------- | 
|                       |  |            |           |          |  |         |         |           |  |              |           |              |  |   |         |  |  | INTER- |            |   |  |  
|YEAR ENDED             |  | COMMERCIAL |           | CONSUMER |  | RETAIL  |         | CORPORATE |  | SEGMENT      |           |              |  |  
|DECEMBER 31, 2001      |  | LENDING    |           | LENDING  |  | BANKING |         | SUPPORT   |  | ELIMINATIONS |           | CONSOLIDATED
|                       |  |            |           |          |  |         |         |           |  |              |           |             
|(dollars in thousands) |  |            |           |          |  |         |         |           |  |              |           |             
|Total Revenues(1)      |  | $          | 56,171    |          |  | $       | 13,220  |           |  | $            | 45,980    |              |  | $ | 18,054  |  |  | $      |           |   |  | $ | 133,425   | 
|Net Income             |  |            | 25,523    |          |  |         | 1,267   |           |  |              | 16,657    |              |  |   | 10,736  |  |  |        |           |   |  |   | 54,183    | 
|Total Average Assets   |  |            | 1,718,874 |          |  |         | 234,280 |           |  |              | 2,252,980 |              |  |   | 434,273 |  |  |        | (1,967,436 | ) |  |   | 2,672,971 | 
|End of Period Goodwill |  |            |          |          |  |         |        |           |  |              | 4,523     |              |  |   |        |  |  |        |           |   |  |   | 4,523     | 

(1)Net interest income before provision for loan losses plus noninterest income.

The profitability of each of Corus business segments may be affected by
changes in, and the level of, interest rates. The direction and degree of this
impact will vary based on the asset/liability mix of each segment.

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CORUS BANKSHARES 2003 ANNUAL REPORT

17. GOODWILL

The following table presents both reported and adjusted net income and earnings
per share. Prior year amounts have been restated to exclude amortization
expense related to goodwill, as required by SFAS No. 142.

|                                              |                                 |      |        |        |  |      |        |        |  |   |        |        | 
|--------------------------------------------- | ------------------------------- | ---- | ------ | ------ |  | ---- | ------ | ------ |  | - | ------ | ------ | 
|YEARS ENDED DECEMBER 31                       |                                 | 2003 |        | 2002   |  | 2001
|                                              |                                 |      |        |        |  |     
|(dollars in thousands, except per share data) |                                 |      |        |        |  |     
|NET INCOME                                    |                                 |      |        |        |  |      |        |        |  |   |        |       
|                                              | Reported net income             |      | $      | 58,410 |  |      | $      | 49,314 |  |   | $      | 54,183 | 
|                                              | Add back: Goodwill amortization |      |        |       |  |      |        |       |  |   |        | 893    | 
|                                              |                                 |      |        |        |  |      |        |        |  |   |        |        | 
|Adjusted Net Income                           |                                 | $    | 58,410 |        |  | $    | 49,314 |        |  | $ | 55,076 |       
|                                              |                                 |      |        |        |  |      |        |        |  |   |        |        | 
|BASIC EARNINGS PER SHARE(1)                   |                                 |      |        |        |  |      |        |        |  |   |        |       
|                                              | Reported net income             |      | $      | 2.08   |  |      | $      | 1.74   |  |   | $      | 1.92   | 
|                                              | Add back: Goodwill amortization |      |        |       |  |      |        |       |  |   |        | 0.03   | 
|                                              |                                 |      |        |        |  |      |        |        |  |   |        |        | 
|Adjusted Net Income                           |                                 | $    | 2.08   |        |  | $    | 1.74   |        |  | $ | 1.95   |       
|                                              |                                 |      |        |        |  |      |        |        |  |   |        |        | 
|DILUTED EARNINGS PER SHARE(1)                 |                                 |      |        |        |  |      |        |        |  |   |        |       
|                                              | Reported net income             |      | $      | 2.04   |  |      | $      | 1.72   |  |   | $      | 1.89   | 
|                                              | Add back: Goodwill amortization |      |        |       |  |      |        |       |  |   |        | 0.03   | 
|                                              |                                 |      |        |        |  |      |        |        |  |   |        |        | 
|Adjusted Net Income                           |                                 | $    | 2.04   |        |  | $    | 1.72   |        |  | $ | 1.92   |       
|                                              |                                 |      |        |        |  |      |        |        |  |   |        |        | 

(1)All amounts have been restated to reflect a 100% stock dividend on 12/15/03.

Note: The goodwill amortization was not tax deductible and as a result pretax and after-tax amounts are equivalent.

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CORUS BANKSHARES 2003 ANNUAL REPORT

NOTE 18: PARENT COMPANY FINANCIAL STATEMENTS

Corus condensed parent company financial statements were as follows:

Condensed Balance Sheets

|                                           |                                              |      |         |         |  |   |         |         | 
|------------------------------------------ | -------------------------------------------- | ---- | ------- | ------- |  | - | ------- | ------- | 
|DECEMBER 31                                |                                              | 2003 |         | 2002   
|                                           |                                              |      |         |        
|(dollars in thousands)                     |                                              |      |         |        
|ASSETS                                     |                                              |      |         |         |  |   |         |        
|                                           | Cash                                         |      | $       | 5,879   |  |   | $       | 405     | 
|                                           | Available-for-sale securities, at fair value |      |         | 188,844 |  |   |         | 147,845 | 
|                                           | Investment in subsidiaries                   |      |         | 584,966 |  |   |         | 390,779 | 
|                                           | Other assets                                 |      |         | 16,282  |  |   |         | 7,331   | 
|                                           |                                              |      |         |         |  |   |         |         | 
|Total Assets                               |                                              | $    | 795,971 |         |  | $ | 546,360 |        
|                                           |                                              |      |         |         |  |   |         |         | 
|LIABILITIES AND SHAREHOLDERS EQUITY       |                                              |      |         |         |  |   |         |        
|                                           | Long-term debt  subordinated debentures     |      | $       | 177,837 |  |   | $       |        | 
|                                           | Borrowings                                   |      |         | 35,000  |  |   |         | 45,375  | 
|                                           | Other liabilities                            |      |         | 36,954  |  |   |         | 18,944  | 
|                                           | Shareholders equity                         |      |         | 546,180 |  |   |         | 482,041 | 
|                                           |                                              |      |         |         |  |   |         |         | 
|Total Liabilities and Shareholders Equity |                                              | $    | 795,971 |         |  | $ | 546,360 |        
|                                           |                                              |      |         |         |  |   |         |         | 

Condensed Statements of Income

|                                              |                                                       |                                                                                 |        |        |        |      |        |        |        |   |        |        |        | 
|--------------------------------------------- | ----------------------------------------------------- | ------------------------------------------------------------------------------- | ------ | ------ | ------ | ---- | ------ | ------ | ------ | - | ------ | ------ | ------ | 
|YEARS ENDED DECEMBER 31                       |                                                       | 2003                                                                            |        | 2002   |        | 2001
|                                              |                                                       |                                                                                 |        |        |        |     
|(dollars in thousands, except per share data) |                                                       |                                                                                 |        |        |        |     
|INCOME                                        |                                                       |                                                                                 |        |        |        |      |        |        |        |   |        |       
|                                              | Dividends from bank subsidiary                        |                                                                                 | $      | 35,000 |        |      | $      | 12,000 |        |   | $      |       |       
|                                              | Dividends from common stock portfolio                 |                                                                                 |        | 5,311  |        |      |        | 4,810  |        |   |        | 4,405  |       
|                                              | Securities gains, net                                 |                                                                                 |        | 1,112  |        |      |        | 951    |        |   |        | 5,220  |       
|                                              | Other income                                          |                                                                                 |        | 82     |        |      |        | 24     |        |   |        | 826    |       
|                                              |                                                       |                                                                                 |        |        |        |      |        |        |        |   |        |        |       
|                                              |                                                       | Total Income                                                                    |        |        | 41,505 |      |        |        | 17,785 |   |        |        | 10,451 | 
|                                              |                                                       |                                                                                 |        |        |        |      |        |        |        |   |        |        |       
|EXPENSE                                       |                                                       |                                                                                 |        |        |        |      |        |        |        |   |        |       
|                                              | Interest expense                                      |                                                                                 |        | 3,025  |        |      |        | 1,773  |        |   |        | 1,454  |       
|                                              | Other expenses                                        |                                                                                 |        | 1,002  |        |      |        | 912    |        |   |        | 1,136  |       
|                                              |                                                       |                                                                                 |        |        |        |      |        |        |        |   |        |        |       
|                                              |                                                       | Total Expense                                                                   |        |        | 4,027  |      |        |        | 2,685  |   |        |        | 2,590  | 
|                                              |                                                       |                                                                                 |        |        |        |      |        |        |        |   |        |        |       
|                                              |                                                       | Income Before Income Taxes and Equity in
Undistributed Net Income of Subsidiary |        |        | 37,478 |      |        |        | 15,100 |   |        |        | 7,861  | 
|                                              | Income tax expense/(benefit)                          |                                                                                 |        | (433   | )      |      |        | (93    | )      |   |        | 1,719  |       
|                                              |                                                       |                                                                                 |        |        |        |      |        |        |        |   |        |        |       
|                                              |                                                       | Income Before Equity in Undistributed Net Income of Subsidiary                  |        |        | 37,911 |      |        |        | 15,193 |   |        |        | 6,142  | 
|                                              | Equity in undistributed net income of bank subsidiary |                                                                                 |        | 20,499 |        |      |        | 34,121 |        |   |        | 48,041 |       
|                                              |                                                       |                                                                                 |        |        |        |      |        |        |        |   |        |        |       
|Net Income                                    |                                                       | $                                                                               | 58,410 |        |        | $    | 49,314 |        |        | $ | 54,183 |       
|                                              |                                                       |                                                                                 |        |        |        |      |        |        |        |   |        |        |       
|Net income per share:(1)                      |                                                       |                                                                                 |        |        |        |      |        |        |        |   |        |       
|                                              | Basic                                                 |                                                                                 | $      | 2.08   |        |      | $      | 1.74   |        |   | $      | 1.92   |       
|                                              | Diluted                                               |                                                                                 |        | 2.04   |        |      |        | 1.72   |        |   |        | 1.89   |       



|(1)All amounts have been restated to reflect a 100% stock dividend on 12/15/03.
|-------------------------------------------------------------------------------

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CORUS BANKSHARES 2003 ANNUAL REPORT

Condensed Statements of Cash Flows

|                                                                                  |                                                            |                                                      |        |          |          |      |        |         |         |   |        |         |         |  
|--------------------------------------------------------------------------------- | ---------------------------------------------------------- | ---------------------------------------------------- | ------ | -------- | -------- | ---- | ------ | ------- | ------- | - | ------ | ------- | ------- | -
|YEARS ENDED DECEMBER 31                                                           |                                                            | 2003                                                 |        | 2002     |          | 2001
|                                                                                  |                                                            |                                                      |        |          |          |     
|(dollars in thousands)                                                            |                                                            |                                                      |        |          |          |     
|CASH FLOWS FROM OPERATING ACTIVITIES                                              |                                                            |                                                      |        |          |          |      |        |         |         |   |        |        
|Net income                                                                        |                                                            | $                                                    | 58,410 |          |          | $    | 49,314 |         |         | $ | 54,183 |        
|Adjustments to reconcile net income to net cash
provided by operating activities: |                                                            |                                                      |        |          |          |      |        |         |         |   |        |        
|                                                                                  | Depreciation                                               |                                                      |        | 11       |          |      |        | 15      |         |   |        | 18      |        
|                                                                                  | Securities and other financial instrument gains, net       |                                                      |        | (1,112   | )        |      |        | (951    | )       |   |        | (5,220  | )      
|                                                                                  | (Increase) decrease in other assets                        |                                                      |        | (1,549   | )        |      |        | 504     |         |   |        | 5,440   |        
|                                                                                  | (Decrease) increase in other liabilities                   |                                                      |        | (3,016   | )        |      |        | (1,587  | )       |   |        | 1,449   |        
|                                                                                  | Equity in undistributed net income of subsidiary           |                                                      |        | (20,499  | )        |      |        | (34,121 | )       |   |        | (48,041 | )      
|                                                                                  |                                                            |                                                      |        |          |          |      |        |         |         |   |        |        
|                                                                                  |                                                            | Net Cash Provided by Operating Activities            |        |          | 32,245   |      |        |         | 13,174  |   |        |         | 7,829   |  
|                                                                                  |                                                            |                                                      |        |          |          |      |        |         |         |   |        |        
|CASH FLOWS FROM INVESTING ACTIVITIES                                              |                                                            |                                                      |        |          |          |      |        |         |         |   |        |        
|                                                                                  | Proceeds from sales of available-for-sale securities       |                                                      |        | 10,883   |          |      |        | 2,335   |         |   |        | 11,048  |        
|                                                                                  | Purchases of available-for-sale securities                 |                                                      |        | (3,954   | )        |      |        | (2,329  | )       |   |        | (10,809 | )      
|                                                                                  | Purchases of premises and equipment, net                   |                                                      |        | (5       | )        |      |        | (6      | )       |   |        | (5      | )      
|                                                                                  | Investment in subsidiary trusts                            |                                                      |        | (5,337   | )        |      |        |        |         |   |        |        |        
|                                                                                  | Capital infusion to subsidiary bank                        |                                                      |        | (172,500 | )        |      |        |        |         |   |        | (50,000 | )      
|                                                                                  |                                                            |                                                      |        |          |          |      |        |         |         |   |        |        
|                                                                                  |                                                            | Net Cash Used in Investing Activities                |        |          | (170,913 | )    |        |         |        |   |        |         | (49,766 | )
|                                                                                  |                                                            |                                                      |        |          |          |      |        |         |         |   |        |        
|CASH FLOWS FROM FINANCING ACTIVITIES                                              |                                                            |                                                      |        |          |          |      |        |         |         |   |        |        
|                                                                                  | Issuance of debt                                           |                                                      |        | 177,837  |          |      |        |        |         |   |        | 50,000  |        
|                                                                                  | Repayment of debt                                          |                                                      |        | (9,000   | )        |      |        | (4,000  | )       |   |        | (2,000  | )      
|                                                                                  | (Decrease) increase in borrowings, net                     |                                                      |        | (1,375   | )        |      |        | 1,375   |         |   |        |        |        
|                                                                                  | Issuance of common shares under the stock option plan      |                                                      |        | 471      |          |      |        |        |         |   |        | 206     |        
|                                                                                  | Issuance of common shares under the CLO Commission Program |                                                      |        |         |          |      |        |        |         |   |        | 1,339   |        
|                                                                                  | Retirements of common shares                               |                                                      |        | (5,243   | )        |      |        | (1,698  | )       |   |        | (994    | )      
|                                                                                  | Cash dividends paid on common shares                       |                                                      |        | (18,548  | )        |      |        | (8,918  | )       |   |        | (8,628  | )      
|                                                                                  |                                                            |                                                      |        |          |          |      |        |         |         |   |        |        
|                                                                                  |                                                            | Net Cash Provided by (Used in) Financing Activities  |        |          | 144,142  |      |        |         | (13,241 | ) |        |         | 39,923  |  
|                                                                                  |                                                            |                                                      |        |          |          |      |        |         |         |   |        |        
|                                                                                  |                                                            | Net Increase (Decrease) in Cash and Cash Equivalents |        |          | 5,474    |      |        |         | (67     | ) |        |         | (2,014  | )
|Cash and cash equivalents at beginning of year                                    |                                                            |                                                      | 405    |          |          |      | 472    |         |         |   | 2,486  |        
|                                                                                  |                                                            |                                                      |        |          |          |      |        |         |         |   |        |        
|Cash and Cash Equivalents at End of Year                                          |                                                            | $                                                    | 5,879  |          |          | $    | 405    |         |         | $ | 472    |        
|                                                                                  |                                                            |                                                      |        |          |          |      |        |         |         |   |        |        

| 41 |



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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT

NOTE 19: QUARTERLY FINANCIAL DATA (UNAUDITED)

The following is a summary of quarterly financial information for the years
ended December 31, 2003 and 2002:

|                                              |         |                                                |        |                              |        |                              |        |            |        |            |        |         |        |         |        |         |        |         |        |      |        |   |        |      |        |   |        |      |        |   |        |      |        | 
|--------------------------------------------- | ------- | ---------------------------------------------- | ------ | ---------------------------- | ------ | ---------------------------- | ------ | ---------- | ------ | ---------- | ------ | ------- | ------ | ------- | ------ | ------- | ------ | ------- | ------ | ---- | ------ | - | ------ | ---- | ------ | - | ------ | ---- | ------ | - | ------ | ---- | ------ | 
|                                              |         |                                                |        | YEAR ENDED DECEMBER 31, 2003 |        | YEAR ENDED DECEMBER 31, 2002
|                                              |         |                                                |        |                              |        |                             
|                                              |         |                                                |        | FOURTH                       |        | THIRD                        |        | SECOND     |        | FIRST      |        | FOURTH  |        | THIRD   |        | SECOND  |        | FIRST  
|                                              |         |                                                |        | QUARTER                      |        | QUARTER(1)                   |        | QUARTER(1) |        | QUARTER(1) |        | QUARTER |        | QUARTER |        | QUARTER |        | QUARTER
|                                              |         |                                                |        |                              |        |                              |        |            |        |            |        |         |        |         |        |         |        |        
|(dollars in thousands, except per share data) |         |                                                |        |                              |        |                              |        |            |        |            |        |         |        |         |        |        
|Interest income                               |         | $                                              | 49,175 |                              |        | $                            | 43,887 |            |        | $          | 38,930 |         |        | $       | 38,247 |         |        | $       | 37,003 |      |        | $ | 38,028 |      |        | $ | 41,061 |      |        | $ | 36,786 |     
|Interest expense                              |         |                                                | 13,301 |                              |        |                              | 11,260 |            |        |            | 10,776 |         |        |         | 11,475 |         |        |         | 12,726 |      |        |   | 13,752 |      |        |   | 14,000 |      |        |   | 14,113 |     
|                                              |         |                                                |        |                              |        |                              |        |            |        |            |        |         |        |         |        |         |        |         |        |      |        |   |        |      |        |   |        |      |        |   |        |     
|                                              |         | Net Interest Income                            |        |                              | 35,874 |                              |        |            | 32,627 |            |        |         | 28,154 |         |        |         | 26,772 |         |        |      | 24,277 |   |        |      | 24,276 |   |        |      | 27,061 |   |        |      | 22,673 | 
|                                              |         |                                                |        |                              |        |                              |        |            |        |            |        |         |        |         |        |         |        |         |        |      |        |   |        |      |        |   |        |      |        |   |        |     
|Provision for loan losses                     |         |                                                |       |                              |        |                              |       |            |        |            |       |         |        |         |       |         |        |         |       |      |        |   |       |      |        |   |       |      |        |   |       |     
|                                              |         |                                                |        |                              |        |                              |        |            |        |            |        |         |        |         |        |         |        |         |        |      |        |   |        |      |        |   |        |      |        |   |        |     
|                                              |         | Net Interest Income After
Provision for Losses |        |                              | 35,874 |                              |        |            | 32,627 |            |        |         | 28,154 |         |        |         | 26,772 |         |        |      | 24,277 |   |        |      | 24,276 |   |        |      | 27,061 |   |        |      | 22,673 | 
|Noninterest income                            |         |                                                | 3,695  |                              |        |                              | 5,246  |            |        |            | 4,358  |         |        |         | 3,621  |         |        |         | 3,765  |      |        |   | 8,690  |      |        |   | 5,404  |      |        |   | 5,220  |     
|Noninterest expense                           |         |                                                | 14,180 |                              |        |                              | 13,067 |            |        |            | 12,584 |         |        |         | 12,702 |         |        |         | 12,340 |      |        |   | 11,160 |      |        |   | 11,717 |      |        |   | 12,255 |     
|                                              |         |                                                |        |                              |        |                              |        |            |        |            |        |         |        |         |        |         |        |         |        |      |        |   |        |      |        |   |        |      |        |   |        |     
|                                              |         | Income Before Taxes                            |        |                              | 25,389 |                              |        |            | 24,806 |            |        |         | 19,928 |         |        |         | 17,691 |         |        |      | 15,702 |   |        |      | 21,806 |   |        |      | 20,748 |   |        |      | 15,638 | 
|Income tax expense                            |         |                                                | 8,532  |                              |        |                              | 8,338  |            |        |            | 6,636  |         |        |         | 5,898  |         |        |         | 5,169  |      |        |   | 7,316  |      |        |   | 6,925  |      |        |   | 5,170  |     
|                                              |         |                                                |        |                              |        |                              |        |            |        |            |        |         |        |         |        |         |        |         |        |      |        |   |        |      |        |   |        |      |        |   |        |     
|Net Income Available to
Common Shareholders   |         | $                                              | 16,857 |                              |        | $                            | 16,468 |            |        | $          | 13,292 |         |        | $       | 11,793 |         |        | $       | 10,533 |      |        | $ | 14,490 |      |        | $ | 13,823 |      |        | $ | 10,468 |     
|                                              |         |                                                |        |                              |        |                              |        |            |        |            |        |         |        |         |        |         |        |         |        |      |        |   |        |      |        |   |        |      |        |   |        |     
|Net income per share:(2)                      |         |                                                |        |                              |        |                              |        |            |        |            |        |         |        |         |        |         |        |         |        |      |        |   |        |      |        |   |        |      |        |   |        |     
|                                              | Basic   |                                                | $      | 0.60                         |        |                              | $      | 0.59       |        |            | $      | 0.47    |        |         | $      | 0.42    |        |         | $      | 0.37 |        |   | $      | 0.51 |        |   | $      | 0.49 |        |   | $      | 0.37 |       
|                                              | Diluted |                                                |        | 0.59                         |        |                              |        | 0.58       |        |            |        | 0.46    |        |         |        | 0.41    |        |         |        | 0.37 |        |   |        | 0.51 |        |   |        | 0.48 |        |   |        | 0.36 |       

(1) Restated to reflect
the adoption of SFAS No. 123.

(2) All amounts have been restated to reflect a 100% stock dividend on 12/15/03.

Common Stock Market Information and Dividend Highlights (Unaudited)

|                        |       |  |                              |       |                              |  |         |       |         |  |         |       |         |  |         |       |         |  |       |       |  |  |       |       |  |  |       |       |  |  |       |       | 
|----------------------- | ----- |  | ---------------------------- | ----- | ---------------------------- |  | ------- | ----- | ------- |  | ------- | ----- | ------- |  | ------- | ----- | ------- |  | ----- | ----- |  |  | ----- | ----- |  |  | ----- | ----- |  |  | ----- | ----- | 
|                        |       |  | YEAR ENDED DECEMBER 31, 2003 |       | YEAR ENDED DECEMBER 31, 2002
|                        |       |  |                              |       |                             
|                        |       |  | FOURTH                       |       | THIRD                        |  | SECOND  |       | FIRST   |  | FOURTH  |       | THIRD   |  | SECOND  |       | FIRST  
|                        |       |  | QUARTER                      |       | QUARTER                      |  | QUARTER |       | QUARTER |  | QUARTER |       | QUARTER |  | QUARTER |       | QUARTER
|                        |       |  |                              |       |                              |  |         |       |         |  |         |       |         |  |         |       |        
|Stock
price range       |       |  |                              |       |                              |  |         |       |         |  |         |       |         |  |         |       |         |  |       |       |  |  |       |       |  |  |       |       |  |  |       |      
|                        | High  |  | $                            | 32.09 |                              |  | $       | 27.30 |         |  | $       | 25.34 |         |  | $       | 22.45 |         |  | $     | 22.96 |  |  | $     | 24.33 |  |  | $     | 26.69 |  |  | $     | 25.53 | 
|                        | Low   |  |                              | 27.12 |                              |  |         | 24.17 |         |  |         | 19.99 |         |  |         | 19.73 |         |  |       | 19.49 |  |  |       | 20.61 |  |  |       | 22.55 |  |  |       | 21.61 | 
|                        | Close |  |                              | 31.02 |                              |  |         | 26.74 |         |  |         | 24.07 |         |  |         | 19.96 |         |  |       | 21.83 |  |  |       | 21.91 |  |  |       | 22.96 |  |  |       | 23.77 | 
|Cash dividends declared |       |  | 0.250                        |       |                              |  | 0.250   |       |         |  | 0.250   |       |         |  | 0.080   |       |         |  | 0.080 |       |  |  | 0.080 |       |  |  | 0.080 |       |  |  | 0.078 |      

All amounts have been restated to reflect a 100% stock dividend on 12/15/03.

Corus common stock is a NASDAQ National Market Issue trading under the ticker symbol CORS.

| 42 |



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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT

REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

Shareholders and Board of Directors
Corus Bankshares, Inc.

We have audited the accompanying consolidated balance sheet of Corus
Bankshares, Inc. and subsidiary as of December 31, 2003 and 2002, and the
related consolidated statements of income, changes in shareholders equity and
cash flows for the two years then ended. These financial statements are the
responsibility of the Companys management. Our responsibility is to express an
opinion on these financial statements based on our audit. The financial
statements of Corus Bankshares, Inc. for the year ended December 31, 2001 were
audited by other auditors who have ceased operations. Those auditors expressed
an unqualified opinion on those financial statements in their report dated
January 15, 2002.

We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly,
in all material respects, the consolidated financial position of Corus
Bankshares, Inc. and subsidiary as of December 31, 2003 and 2002, and the
consolidated results of their operations and their cash flows for each of the
two years in the period ended December 31, 2003, in conformity with accounting
principles generally accepted in the United States.

/s/ Ernst & Young LLP

Chicago, IllinoisJanuary 16, 2004

| 43 |



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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT

REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS

To the Board of Directors and Shareholders of Corus Bankshares, Inc.:

We have audited the accompanying consolidated balance sheets of Corus
Bankshares, Inc. and subsidiary as of December 31, 2001 and 2000, and the
related consolidated statements of income, changes in shareholders equity and
cash flows for each of the three years in the period ended December 31, 2001.
These consolidated financial statements are the responsibility of the
Corporations management. Our responsibility is to express an opinion on these
consolidated financial statements based on our
audits.      We conducted our audits
in accordance with auditing standards generally accepted in the United States.
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the financial position of Corus
Bankshares, Inc. and subsidiary at December 31, 2001 and 2000, and the results
of their operations and their cash flows for each of the three years in the
period ended December 31, 2001, in conformity with accounting principles
generally accepted in the United States.

/s/ Arthur Andersen LLP

Chicago, IllinoisJanuary 15, 2002

This report is a copy of the previously issued Arthur Andersen LLP accountants
report and has not been reissued by Arthur Andersen LLP.

| 44 |



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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT

MANAGEMENTS DISCUSSION and ANALYSIS ofFINANCIAL STATEMENTS

EARNINGS SUMMARY

Corus Bankshares, Inc. (Corus) reported net income of $58.4 million in 2003,
compared with $49.3 million and $54.2 million in 2002 and 2001, respectively.
This translates to diluted earnings per share of $2.04, $1.72, and $1.89 for
2003, 2002, and 2001, respectively (the earnings per share amounts have been
restated to reflect a 100% stock dividend on 12/15/03). Return on average
common equity was 11.6% for 2003, 10.6% for 2002, and 12.8% for 2001. The
return on average assets was 2.0% in 2003, compared with 1.9% and 2.0% in 2002
and 2001, respectively.

Net Interest Income

The principal source of earnings for Corus is net interest income, the
difference between interest income and fees on earning assets and interest
expense on deposits and borrowings. The related net interest margin represents
net interest income, on a tax-equivalent basis, as a percentage of average
earning assets during the period. The table on the following page presents
Corus consolidated average balance sheets and net interest income and reflects
the average yield on assets and cost of liabilities for the last three years.
The yields and costs are adjusted for the accretion or amortization of deferred
fees. Interest income on nonaccrual loans is reflected either in the year
collected or when collection of the associated principal is no longer in
question. Such amounts are not material to net interest income or net change in
net interest income in any year. Nonaccrual loans are included in the average
balances and do not have a material effect on the average yield.

For the twelve
months ended December 31, 2003, Corus net interest margin increased by 40
basis points compared to the prior year. This increase was achieved in spite of
the fact that the Federal Reserve cut interest rates twice, for a combined 75
basis points, from the fourth quarter of 2002 to the fourth quarter of 2003.
Corus was able to increase its net interest margin versus 2002, due primarily
to strong loan growth. Loans are, of course, Corus highest yielding asset.

Another factor affecting yields is the impact of loan fees recognized
during the period. As we have stated previously, loan fee income is a normal
part of our business. The fees typically relate to points paid at closing where
the recognition of income is deferred and amortized ratably over the term of
the loan. Income recognition associated with these fees is relatively
predictable and tends to increase as the overall level of loans increases.
Other types of fees, on the other hand, such as those associated with the
prepayment of loans or a contingent fee arrangement are less predictable and
can result in earnings spikes since recognition of the income is not deferred,
but rather recorded when received. Importantly, these fees are as much a part
of Corus business as points, they are simply accounted for differently due to
their unpredictable nature. In 2003, loan fees totaled $30.7 million, compared
to $20.8 million in 2002. This growth in fees during 2003 over 2002 is driven
by our continued growth in total loans, especially commercial real estate
loans, which generate virtually all of the loan fees.

In 2002, Corus net interest margin decreased by 31 basis points compared
to 2001. This fall in net interest margin was due primarily to the continued
effect of the Federal Reserves dramatic interest rate reductions throughout
2001 and in the fourth quarter of 2002 (12 reductions for a total of 5.25%).
Partially offsetting the effect of declining rates was the increase in loan
fees in 2002 to $20.8 million from $15.1 million in 2001.

| 45 |



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CORUS BANKSHARES 2003 ANNUAL REPORT

AVERAGE BALANCE SHEETS andNET INTEREST MARGIN



|                                                          |                                               |                                            |           |           |           |          |         |         |         |          |      |          |      |        |           |           |           |   |         |         |         |         |      |      |      |  
|--------------------------------------------------------- | --------------------------------------------- | ------------------------------------------ | --------- | --------- | --------- | -------- | ------- | ------- | ------- | -------- | ---- | -------- | ---- | ------ | --------- | --------- | --------- | - | ------- | ------- | ------- | ------- | ---- | ---- | ---- | -
|                                                          |                                               |                                            |           | 2003      |           | 2002    
|                                                          |                                               |                                            |           |           |           |         
|                                                          |                                               |                                            |           |           |           |          |         |         |         |          |      | AVERAGE  |      |        |           |           |           |   |         |         |         | AVERAGE
|                                                          |                                               |                                            |           | AVERAGE   |           | INTEREST |         | YIELD/  |         | AVERAGE  |      | INTEREST |      | YIELD/
|YEARS ENDED DECEMBER 31                                   |                                               | BALANCE                                    |           | AND FEES  |           | COST     |         | BALANCE |         | AND FEES |      | COST    
|                                                          |                                               |                                            |           |           |           |          |         |         |         |          |      |         
|(Dollars in thousands)                                    |                                               |                                            |           |           |           |          |         |         |         |          |      |         
|ASSETS                                                    |                                               |                                            |           |           |           |          |         |         |         |          |      |          |      |        |           |           |           |   |         |         |         |         |      |     
|Earning assets:                                           |                                               |                                            |           |           |           |          |         |         |         |          |      |          |      |        |           |           |           |   |         |         |         |         |      |     
|                                                          | Federal funds sold                            |                                            | $         | 465,794   |           |          | $       | 4,912   |         |          |      | 1.05     | %    |        | $         | 454,939   |           |   | $       | 7,486   |         |         |      | 1.65 | %   
|                                                          | Taxable securities other
than common stocks   |                                            |           | 193,827   |           |          |         | 7,537   |         |          |      | 3.89     | %    |        |           | 294,091   |           |   |         | 11,847  |         |         |      | 4.03 | %   
|                                                          | Common stocks, Bank Holding Company(1)        |                                            |           | 159,082   |           |          |         | 7,312   |         |          |      | 4.60     | %    |        |           | 161,487   |           |   |         | 6,624   |         |         |      | 4.10 | %   
|                                                          | Tax-advantaged
securities(2)                  |                                            |           | 1,099     |           |          |         | 98      |         |          |      | 8.88     | %    |        |           | 1,135     |           |   |         | 102     |         |         |      | 8.95 | %   
|                                                          | Trading account securities                    |                                            |           | 70,590    |           |          |         | 735     |         |          |      | 1.04     | %    |        |           | 26,647    |           |   |         | 449     |         |         |      | 1.68 | %   
|                                                          | CRE
loans, net(3)                             |                                            |           | 1,838,766 |           |          |         | 136,926 |         |          |      | 7.45     | %    |        |           | 1,400,588 |           |   |         | 108,144 |         |         |      | 7.72 | %   
|                                                          | Other
loans, net(3)                           |                                            |           | 161,739   |           |          |         | 14,839  |         |          |      | 9.17     | %    |        |           | 207,953   |           |   |         | 20,195  |         |         |      | 9.71 | %   
|                                                          |                                               |                                            |           |           |           |          |         |         |         |          |      |          |      |        |           |           |           |   |         |         |         |         |      |      |     
|                                                          |                                               | Total Earning Assets                       |           |           | 2,890,897 |          |         |         | 172,359 |          |      |          | 5.96 | %      |           |           | 2,546,840 |   |         |         | 154,847 |         |      |      | 6.08 | %
|Noninterest-earning assets:                               |                                               |                                            |           |           |           |          |         |         |         |          |      |          |      |        |           |           |           |   |         |         |         |         |      |     
|                                                          | Cash and due from banks 
noninterest-bearing |                                            |           | 76,118    |           |          |         |         |         |          |      |          |      |        |           | 78,004    |           |   |         |         |         |         |      |      |     
|                                                          | Allowance for loan losses                     |                                            |           | (36,221   | )         |          |         |         |         |          |      |          |      |        |           | (39,444   | )         |   |         |         |         |         |      |      |     
|                                                          | Premises and equipment, net                   |                                            |           | 27,426    |           |          |         |         |         |          |      |          |      |        |           | 28,991    |           |   |         |         |         |         |      |      |     
|                                                          | Other assets, including goodwill              |                                            |           | 25,801    |           |          |         |         |         |          |      |          |      |        |           | 25,038    |           |   |         |         |         |         |      |      |     
|                                                          |                                               |                                            |           |           |           |          |         |         |         |          |      |          |      |        |           |           |           |   |         |         |         |         |      |      |     
|Total Assets                                              |                                               | $                                          | 2,984,021 |           |           |          |         |         |         |          |      |          |      | $      | 2,639,429 |           |           |   |         |         |         |         |      |     
|                                                          |                                               |                                            |           |           |           |          |         |         |         |          |      |          |      |        |           |           |           |   |         |         |         |         |      |      |     
|LIABILITIES AND SHAREHOLDERS EQUITY                      |                                               |                                            |           |           |           |          |         |         |         |          |      |          |      |        |           |           |           |   |         |         |         |         |      |     
|Deposits  interest-bearing:                              |                                               |                                            |           |           |           |          |         |         |         |          |      |          |      |        |           |           |           |   |         |         |         |         |      |     
|                                                          | Money market deposits                         |                                            | $         | 981,291   |           |          | $       | 16,393  |         |          |      | 1.67     | %    |        | $         | 892,814   |           |   | $       | 18,030  |         |         |      | 2.02 | %   
|                                                          | Retail certificates of deposit                |                                            |           | 408,670   |           |          |         | 10,350  |         |          |      | 2.53     | %    |        |           | 410,335   |           |   |         | 14,843  |         |         |      | 3.62 | %   
|                                                          | Brokered certificates of deposit              |                                            |           | 392,541   |           |          |         | 14,636  |         |          |      | 3.73     | %    |        |           | 277,210   |           |   |         | 17,128  |         |         |      | 6.18 | %   
|                                                          | NOW deposits                                  |                                            |           | 174,915   |           |          |         | 1,268   |         |          |      | 0.72     | %    |        |           | 119,331   |           |   |         | 573     |         |         |      | 0.48 | %   
|                                                          | Savings deposits                              |                                            |           | 166,815   |           |          |         | 1,189   |         |          |      | 0.71     | %    |        |           | 156,861   |           |   |         | 2,222   |         |         |      | 1.42 | %   
|                                                          |                                               |                                            |           |           |           |          |         |         |         |          |      |          |      |        |           |           |           |   |         |         |         |         |      |      |     
|                                                          |                                               | Total Interest-Bearing Deposits            |           |           | 2,124,232 |          |         |         | 43,836  |          |      |          | 2.06 | %      |           |           | 1,856,551 |   |         |         | 52,796  |         |      |      | 2.84 | %
|                                                          | Long term debt                               |                                            |           |           |           |          |         |         |         |          |      |          |      |        |           |           |           |   |         |         |         |         |      |      |     
|                                                          |                                               | Trust Preferred securities                 |           |           | 42,952    |          |         |         | 1,812   |          |      |          | 4.22 | %      |           |           |          |   |         |         |        |         |      |      |     | %
|                                                          | Other borrowings                              |                                            |           | 41,099    |           |          |         | 1,164   |         |          |      | 2.83     | %    |        |           | 51,572    |           |   |         | 1,795   |         |         |      | 3.48 | %   
|                                                          | Federal Home Loan Bank advances               |                                            |           |          |           |          |         |        |         |          |      |         | %    |        |           |          |           |   |         |        |         |         |      |     | %   
|                                                          |                                               |                                            |           |           |           |          |         |         |         |          |      |          |      |        |           |           |           |   |         |         |         |         |      |      |     
|                                                          |                                               | Total Interest-Bearing Liabilities         |           |           | 2,208,283 |          |         |         | 46,812  |          |      |          | 2.12 | %      |           |           | 1,908,123 |   |         |         | 54,591  |         |      |      | 2.86 | %
|Noninterest-bearing liabilities
and shareholders equity: |                                               |                                            |           |           |           |          |         |         |         |          |      |          |      |        |           |           |           |   |         |         |         |         |      |     
|                                                          | Noninterest-bearing deposits                  |                                            |           | 231,842   |           |          |         |         |         |          |      |          |      |        |           | 225,405   |           |   |         |         |         |         |      |      |     
|                                                          | Other liabilities                             |                                            |           | 39,320    |           |          |         |         |         |          |      |          |      |        |           | 38,532    |           |   |         |         |         |         |      |      |     
|                                                          | Shareholders equity                          |                                            |           | 504,576   |           |          |         |         |         |          |      |          |      |        |           | 467,369   |           |   |         |         |         |         |      |      |     
|                                                          |                                               |                                            |           |           |           |          |         |         |         |          |      |          |      |        |           |           |           |   |         |         |         |         |      |      |     
|                                                          |                                               | Total Liabilities and
Shareholders Equity |           | $         | 2,984,021 |          |         |         |         |          |      |          |      |        |           | $         | 2,639,429 |   |         |         |         |         |      |      |      |  
|                                                          |                                               |                                            |           |           |           |          |         |         |         |          |      |          |      |        |           |           |           |   |         |         |         |         |      |      |     
|Earning assets                                            |                                               | $                                          | 2,890,897 |           |           | $        | 172,359 |         |         |          | 5.96 | %        |      | $      | 2,546,840 |           |           | $ | 154,847 |         |         |         | 6.08 | %   
|Interest-bearing liabilities                              |                                               |                                            | 2,208,283 |           |           |          | 46,812  |         |         |          | 2.12 | %        |      |        | 1,908,123 |           |           |   | 54,591  |         |         |         | 2.86 | %   
|                                                          |                                               |                                            |           |           |           |          |         |         |         |          |      |          |      |        |           |           |           |   |         |         |         |         |      |      |     
|Net Interest Spread                                       |                                               |                                            |           |           |           | $        | 125,547 |         |         |          | 3.84 | %        |      |        |           |           |           | $ | 100,256 |         |         |         | 3.22 | %   
|                                                          |                                               |                                            |           |           |           |          |         |         |         |          |      |          |      |        |           |           |           |   |         |         |         |         |      |      |     
|Net Interest Margin                                       |                                               |                                            |           |           |           |          |         |         |         |          | 4.34 | %        |      |        |           |           |           |   |         |         |         |         | 3.94 | %   
|                                                          |                                               |                                            |           |           |           |          |         |         |         |          |      |          |      |        |           |           |           |   |         |         |         |         |      |      |     

[Additional columns below]

[Continued from above table, first column(s) repeated]

|                                                          |                                               |                                            |           |           |           |          |         |         |         |  |      |         |      |  
|--------------------------------------------------------- | --------------------------------------------- | ------------------------------------------ | --------- | --------- | --------- | -------- | ------- | ------- | ------- |  | ---- | ------- | ---- | -
|                                                          |                                               |                                            |           | 2001     
|                                                          |                                               |                                            |           |          
|                                                          |                                               |                                            |           |           |           |          |         |         |         |  |      | AVERAGE
|                                                          |                                               |                                            |           | AVERAGE   |           | INTEREST |         | YIELD/ 
|YEARS ENDED DECEMBER 31                                   |                                               | BALANCE                                    |           | AND FEES  |           | COST    
|                                                          |                                               |                                            |           |           |           |         
|(Dollars in thousands)                                    |                                               |                                            |           |           |           |         
|ASSETS                                                    |                                               |                                            |           |           |           |          |         |         |         |  |      |        
|Earning assets:                                           |                                               |                                            |           |           |           |          |         |         |         |  |      |        
|                                                          | Federal funds sold                            |                                            | $         | 632,812   |           |          | $       | 23,085  |         |  |      | 3.65    | %   
|                                                          | Taxable securities other
than common stocks   |                                            |           | 157,480   |           |          |         | 9,316   |         |  |      | 5.92    | %   
|                                                          | Common stocks, Bank Holding Company(1)        |                                            |           | 161,892   |           |          |         | 6,067   |         |  |      | 3.75    | %   
|                                                          | Tax-advantaged
securities(2)                  |                                            |           | 1,243     |           |          |         | 113     |         |  |      | 9.13    | %   
|                                                          | Trading account securities                    |                                            |           | 8,341     |           |          |         | 336     |         |  |      | 4.02    | %   
|                                                          | CRE
loans, net(3)                             |                                            |           | 1,320,018 |           |          |         | 121,592 |         |  |      | 9.21    | %   
|                                                          | Other
loans, net(3)                           |                                            |           | 295,647   |           |          |         | 30,035  |         |  |      | 10.16   | %   
|                                                          |                                               |                                            |           |           |           |          |         |         |         |  |      |         |     
|                                                          |                                               | Total Earning Assets                       |           |           | 2,577,433 |          |         |         | 190,544 |  |      |         | 7.39 | %
|Noninterest-earning assets:                               |                                               |                                            |           |           |           |          |         |         |         |  |      |        
|                                                          | Cash and due from banks 
noninterest-bearing |                                            |           | 78,312    |           |          |         |         |         |  |      |         |     
|                                                          | Allowance for loan losses                     |                                            |           | (41,069   | )         |          |         |         |         |  |      |         |     
|                                                          | Premises and equipment, net                   |                                            |           | 31,004    |           |          |         |         |         |  |      |         |     
|                                                          | Other assets, including goodwill              |                                            |           | 27,291    |           |          |         |         |         |  |      |         |     
|                                                          |                                               |                                            |           |           |           |          |         |         |         |  |      |         |     
|Total Assets                                              |                                               | $                                          | 2,672,971 |           |           |          |         |         |         |  |      |        
|                                                          |                                               |                                            |           |           |           |          |         |         |         |  |      |         |     
|LIABILITIES AND SHAREHOLDERS EQUITY                      |                                               |                                            |           |           |           |          |         |         |         |  |      |        
|Deposits  interest-bearing:                              |                                               |                                            |           |           |           |          |         |         |         |  |      |        
|                                                          | Money market deposits                         |                                            | $         | 967,379   |           |          | $       | 34,009  |         |  |      | 3.52    | %   
|                                                          | Retail certificates of deposit                |                                            |           | 408,592   |           |          |         | 21,987  |         |  |      | 5.38    | %   
|                                                          | Brokered certificates of deposit              |                                            |           | 297,221   |           |          |         | 18,306  |         |  |      | 6.16    | %   
|                                                          | NOW deposits                                  |                                            |           | 110,894   |           |          |         | 1,239   |         |  |      | 1.12    | %   
|                                                          | Savings deposits                              |                                            |           | 148,259   |           |          |         | 3,191   |         |  |      | 2.15    | %   
|                                                          |                                               |                                            |           |           |           |          |         |         |         |  |      |         |     
|                                                          |                                               | Total Interest-Bearing Deposits            |           |           | 1,932,345 |          |         |         | 78,732  |  |      |         | 4.07 | %
|                                                          | Long term debt                               |                                            |           |           |           |          |         |         |         |  |      |         |     
|                                                          |                                               | Trust Preferred securities                 |           |           |          |          |         |         |        |  |      |         |     | %
|                                                          | Other borrowings                              |                                            |           | 32,850    |           |          |         | 1,541   |         |  |      | 4.69    | %   
|                                                          | Federal Home Loan Bank advances               |                                            |           | 11,068    |           |          |         | 648     |         |  |      | 5.86    | %   
|                                                          |                                               |                                            |           |           |           |          |         |         |         |  |      |         |     
|                                                          |                                               | Total Interest-Bearing Liabilities         |           |           | 1,976,263 |          |         |         | 80,921  |  |      |         | 4.09 | %
|Noninterest-bearing liabilities
and shareholders equity: |                                               |                                            |           |           |           |          |         |         |         |  |      |        
|                                                          | Noninterest-bearing deposits                  |                                            |           | 227,988   |           |          |         |         |         |  |      |         |     
|                                                          | Other liabilities                             |                                            |           | 44,293    |           |          |         |         |         |  |      |         |     
|                                                          | Shareholders equity                          |                                            |           | 424,427   |           |          |         |         |         |  |      |         |     
|                                                          |                                               |                                            |           |           |           |          |         |         |         |  |      |         |     
|                                                          |                                               | Total Liabilities and
Shareholders Equity |           | $         | 2,672,971 |          |         |         |         |  |      |         |      |  
|                                                          |                                               |                                            |           |           |           |          |         |         |         |  |      |         |     
|Earning assets                                            |                                               | $                                          | 2,577,433 |           |           | $        | 190,544 |         |         |  | 7.39 | %      
|Interest-bearing liabilities                              |                                               |                                            | 1,976,263 |           |           |          | 80,921  |         |         |  | 4.09 | %      
|                                                          |                                               |                                            |           |           |           |          |         |         |         |  |      |         |     
|Net Interest Spread                                       |                                               |                                            |           |           |           | $        | 109,623 |         |         |  | 3.30 | %      
|                                                          |                                               |                                            |           |           |           |          |         |         |         |  |      |         |     
|Net Interest Margin                                       |                                               |                                            |           |           |           |          |         |         |         |  | 4.25 | %      
|                                                          |                                               |                                            |           |           |           |          |         |         |         |  |      |         |     



|(1) |  | Dividends on the common stock portfolio include a tax equivalent adjustment
of $2.0 million, $1.8 million, and $1.7 million for 2003, 2002, and 2001,
respectively.
|--- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|(2) |  | Interest income on tax-advantaged securities includes a tax
equivalent adjustment of $34,000, $36,000, and $40,000 for 2003, 2002, and
2001, respectively.         
|   
|(3) |  | Interest income on tax-advantaged loans includes a tax
equivalent adjustment of $85,000, $120,000, and $213,000 for 2003, 2002, and
2001, respectively.            
|   
|    |  | Unremitted interest on nonaccrual loans is not included in the amounts.
Includes net interest income derived from interest rate swap contracts.                    

| 46 |



---



##### 



CORUS BANKSHARES 2003 ANNUAL REPORT

The following table, which presents the components of changes in net interest
income by volume and rate, provides further evidence supporting the preceding
discussion.

Net Interest Income Volume/Rate Analysis

|                                                            |                                               |        |                       |        |                       |       |        |         |                  |      |        |        |   |   |        |        |   |   |         |         |   |   |         |         |  
|----------------------------------------------------------- | --------------------------------------------- | ------ | --------------------- | ------ | --------------------- | ----- | ------ | ------- | ---------------- | ---- | ------ | ------ | - | - | ------ | ------ | - | - | ------- | ------- | - | - | ------- | ------- | -
|                                                            |                                               |        | 2003 COMPARED TO 2002 |        | 2002 COMPARED TO 2001
|                                                            |                                               |        |                       |        |                      
|                                                            |                                               |        | CHANGE DUE TO(1)      |        |                       |       |        |         | CHANGE DUE TO(1) |      |        |        |  
|                                                            |                                               |        |                       |        |                       |       |        |         |                  |      |        |        |  
|YEARS ENDED DECEMBER 31                                     |                                               | VOLUME |                       | RATE   |                       | TOTAL |        | VOLUME  |                  | RATE |        | TOTAL 
|                                                            |                                               |        |                       |        |                       |       |        |         |                  |      |        |       
|(dollars in thousands)                                      |                                               |        |                       |        |                       |       |        |         |                  |      |        |       
|Interest-bearing deposits with
banks and federal funds sold |                                               | $      | 147                   |        |                       | $     | (2,720 | )       |                  | $    | (2,573 | )      |   | $ | (4,708 | )      |   | $ | (10,891 | )       |   | $ | (15,599 | )      
|Investment securities(2)(3)                                 |                                               |        | (2,241                | )      |                       |       | (1,099 | )       |                  |      | (3,340 | )      |   |   | 6,754  |        |   |   | (3,564  | )       |   |   | 3,190   |        
|Loans, net of unearned discount(3)(4)                       |                                               |        | 30,504                |        |                       |       | (7,079 | )       |                  |      | 23,425 |        |   |   | (618   | )      |   |   | (22,670 | )       |   |   | (23,288 | )      
|                                                            |                                               |        |                       |        |                       |       |        |         |                  |      |        |        |   |   |        |        |   |   |         |         |   |   |         |        
|                                                            | Total Increase (Decrease) in
Interest Income  |        |                       | 28,410 |                       |       |        | (10,898 | )                |      |        | 17,512 |   |   |        | 1,428  |   |   |         | (37,125 | ) |   |         | (35,697 | )
|                                                            |                                               |        |                       |        |                       |       |        |         |                  |      |        |        |   |   |        |        |   |   |         |         |   |   |         |        
|NOW and money market deposits                               |                                               |        | 2,424                 |        |                       |       | (3,366 | )       |                  |      | (942   | )      |   |   | (1,689 | )      |   |   | (14,956 | )       |   |   | (16,645 | )      
|Savings deposits                                            |                                               |        | 106                   |        |                       |       | (1,139 | )       |                  |      | (1,033 | )      |   |   | 154    |        |   |   | (1,123  | )       |   |   | (969    | )      
|Brokered certificates of deposit                            |                                               |        | 5,713                 |        |                       |       | (8,205 | )       |                  |      | (2,492 | )      |   |   | (1,235 | )      |   |   | 57      |         |   |   | (1,178  | )      
|Retail certificates of deposit                              |                                               |        | (51                   | )      |                       |       | (4,442 | )       |                  |      | (4,493 | )      |   |   | 78     |        |   |   | (7,222  | )       |   |   | (7,144  | )      
|Other liabilities                                           |                                               |        | 1,140                 |        |                       |       | 41     |         |                  |      | 1,181  |        |   |   | 324    |        |   |   | (718    | )       |   |   | (394    | )      
|                                                            |                                               |        |                       |        |                       |       |        |         |                  |      |        |        |   |   |        |        |   |   |         |         |   |   |         |        
|                                                            | Total Increase (Decrease) in
Interest Expense |        |                       | 9,332  |                       |       |        | (17,111 | )                |      |        | (7,779 | ) |   |        | (2,368 | ) |   |         | (23,962 | ) |   |         | (26,330 | )
|                                                            |                                               |        |                       |        |                       |       |        |         |                  |      |        |        |   |   |        |        |   |   |         |         |   |   |         |        
|Increase (Decrease) in Net Interest Income                  |                                               | $      | 19,078                |        |                       | $     | 6,213  |         |                  | $    | 25,291 |        |   | $ | 3,796  |        |   | $ | (13,163 | )       |   | $ | (9,367  | )      
|                                                            |                                               |        |                       |        |                       |       |        |         |                  |      |        |        |   |   |        |        |   |   |         |         |   |   |         |        



|(1) |  | The net changes attributable to the combined impact of volume and
rate have been allocated equally to both volume and rate.                    
|--- |  | -----------------------------------------------------------------------------------------------------------------------------------------------
|   
|(2) |  | Dividends
on the common stock portfolio reflect a tax equivalent adjustment for
the 70% dividend received deduction.                           
|   
|(3) |  | Interest income on
tax-advantaged loans and securities reflects a tax equivalent
adjustment based on an income tax rate of 35%.                
|   
|(4) |  | Unremitted interest on nonaccrual loans is not included in the amounts.
Includes net interest income derived from interest rate swap contracts.

| 47 |



---



##### 



CORUS BANKSHARES 2003 ANNUAL REPORT

Finally, the following table shows Corus average earning assets for the last
three years. Commercial real estate loans continue to increase as a percentage
of earning assets, which is consistent with Corus continued focus on this
sector.

Average Earning Assets

|                                    |                              |                  |                              |                |           |                |       |     |      |      |           |        |         |           |       |     |      |      |           |         |         |           |       |     |      |      |  
|----------------------------------- | ---------------------------- | ---------------- | ---------------------------- | -------------- | --------- | -------------- | ----- | --- | ---- | ---- | --------- | ------ | ------- | --------- | ----- | --- | ---- | ---- | --------- | ------- | ------- | --------- | ----- | --- | ---- | ---- | -
|                                    |                              |                  |                              |                | 2003      |                | 2002  |     | 2001
|                                    |                              |                  |                              |                |           |                |       |     |     
|YEARS ENDED DECEMBER 31             |                              | AMOUNT PERCENT   |                              | AMOUNT PERCENT |           | AMOUNT PERCENT
|                                    |                              |                  |                              |                |           |               
|(dollars in thousands)              |                              |                  |                              |                |           |                |       |     |      |      |           |       
|Loans                               |                              |                  |                              |                |           |                |       |     |      |      |           |        |         |           |       |     |      |      |           |         |         |           |       |    
|                                    | Commercial real estate:      |                  |                              |                |           |                |       |     |      |      |           |        |         |           |       |     |      |      |           |         |         |           |       |     |     
|                                    |                              | Non-construction |                              | $              | 1,103,312 |                |       |     | 38.2 | %    |           | $      | 799,263 |           |       |     | 31.4 | %    |           | $       | 721,381 |           |       |     | 28.0 | %   
|                                    |                              | Construction     |                              |                | 694,961   |                |       |     | 24.0 | %    |           |        | 561,918 |           |       |     | 22.1 | %    |           |         | 571,157 |           |       |     | 22.1 | %   
|                                    |                              | Mezzanine        |                              |                | 40,493    |                |       |     | 1.4  | %    |           |        | 39,407  |           |       |     | 1.5  | %    |           |         | 27,480  |           |       |     | 1.1  | %   
|                                    |                              |                  |                              |                |           |                |       |     |      |      |           |        |         |           |       |     |      |      |           |         |         |           |       |     |      |     
|                                    |                              |                  | Total Commercial Real Estate |                |           | 1,838,766      |       |     |      | 63.6 | %         |        |         | 1,400,588 |       |     |      | 55.0 | %         |         |         | 1,320,018 |       |     |      | 51.2 | %
|                                    | Commercial                   |                  |                              | 78,744         |           |                |       | 2.7 | %    |      |           | 84,663 |         |           |       | 3.3 | %    |      |           | 81,603  |         |           |       | 3.2 | %   
|                                    | Home equity                  |                  |                              | 39,343         |           |                |       | 1.4 | %    |      |           | 66,690 |         |           |       | 2.6 | %    |      |           | 102,744 |         |           |       | 4.0 | %   
|                                    | Residential first mortgage   |                  |                              | 33,686         |           |                |       | 1.2 | %    |      |           | 43,026 |         |           |       | 1.7 | %    |      |           | 61,210  |         |           |       | 2.4 | %   
|                                    | Student                      |                  |                              | 9,391          |           |                |       | 0.3 | %    |      |           | 12,642 |         |           |       | 0.5 | %    |      |           | 36,432  |         |           |       | 1.4 | %   
|                                    | Medical finance and consumer |                  |                              | 575            |           |                |       |    | %    |      |           | 932    |         |           |       |    | %    |      |           | 13,658  |         |           |       | 0.5 | %   
|                                    |                              |                  |                              |                |           |                |       |     |      |      |           |        |         |           |       |     |      |      |           |         |         |           |       |     |      |     
|                                    |                              |                  | Total Loans                  |                |           | 2,000,505      |       |     |      | 69.2 | %         |        |         | 1,608,541 |       |     |      | 63.1 | %         |         |         | 1,615,665 |       |     |      | 62.7 | %
|Federal funds sold                  |                              |                  | 465,794                      |                |           |                | 16.1  | %   |      |      | 454,939   |        |         |           | 17.9  | %   |      |      | 632,812   |         |         |           | 24.5  | %  
|Securities other than common stocks |                              |                  | 265,516                      |                |           |                | 9.2   | %   |      |      | 321,873   |        |         |           | 12.6  | %   |      |      | 167,064   |         |         |           | 6.5   | %  
|Common stocks, Bank Holding Company |                              |                  | 159,082                      |                |           |                | 5.5   | %   |      |      | 161,487   |        |         |           | 6.4   | %   |      |      | 161,892   |         |         |           | 6.3   | %  
|                                    |                              |                  |                              |                |           |                |       |     |      |      |           |        |         |           |       |     |      |      |           |         |         |           |       |     |      |     
|Total Earning Assets                |                              | $                | 2,890,897                    |                |           |                | 100.0 | %   |      | $    | 2,546,840 |        |         |           | 100.0 | %   |      | $    | 2,577,433 |         |         |           | 100.0 | %  
|                                    |                              |                  |                              |                |           |                |       |     |      |      |           |        |         |           |       |     |      |      |           |         |         |           |       |     |      |     

Noninterest Income

For 2003, Corus reported $16.9 million of total noninterest income compared to
$23.1 million in 2002, resulting in a decrease of $6.2 million, or 26.7%.
Excluding securities and other financial instrument gains and losses,
non-interest income decreased $1.3 million, or 8%, to $14.6 million.

Noninterest Income

|                                                                                                                          |  |      |        |      |  |      |        |        |  |        |        |  |  |           |       |           |  |  |        |   
|------------------------------------------------------------------------------------------------------------------------- |  | ---- | ------ | ---- |  | ---- | ------ | ------ |  | ------ | ------ |  |  | --------- | ----- | --------- |  |  | ------ | --
|                                                                                                                          |  |      |        |      |  |      |        |        |  |        |        |  |  | 2003/2002 |       | 2002/2001
|YEARS ENDED DECEMBER 31                                                                                                   |  | 2003 |        | 2002 |  | 2001 |        | CHANGE |  | CHANGE
|                                                                                                                          |  |      |        |      |  |      |        |        |  |       
|(dollars in thousands)                                                                                                    |  |      |        |      |  |      |        |        |  |       
|Service charges on deposit accounts                                                                                       |  | $    | 11,878 |      |  | $    | 12,065 |        |  | $      | 11,094 |  |  |           | (1.5  | )%        |  |  | 8.8    | % 
|Securities and other financial instrument
gains, net                                                                      |  |      | 2,366  |      |  |      | 7,258  |        |  |        | 7,835  |  |  |           | (67.4 | )%        |  |  | (7.4   | )%
|Gain on sale of student loans                                                                                             |  |      |       |      |  |      |       |        |  |        | 2,201  |  |  |           |      | %         |  |  | (100.0 | )%
|Other                                                                                                                     |  |      | 2,676  |      |  |      | 3,756  |        |  |        | 4,586  |  |  |           | (28.8 | )%        |  |  | (18.1  | )%
|                                                                                                                          |  |      |        |      |  |      |        |        |  |        |        |  |  |           |       |           |  |  |        |   
|Total Noninterest Income                                                                                                  |  | $    | 16,920 |      |  | $    | 23,079 |        |  | $      | 25,716 |  |  |           | (26.7 | )%        |  |  | (10.3  | )%
|                                                                                                                          |  |      |        |      |  |      |        |        |  |        |        |  |  |           |       |           |  |  |        |   
|Noninterest Income, Excluding Securities and
Other Financial Instrument Gains/(Losses),
and Gain on Sale of Student Loans |  | $    | 14,554 |      |  | $    | 15,821 |        |  | $      | 15,680 |  |  |           | 8.0   | %         |  |  | 0.9    | % 
|                                                                                                                          |  |      |        |      |  |      |        |        |  |        |        |  |  |           |       |           |  |  |        |   

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CORUS BANKSHARES 2003 ANNUAL REPORT

Service Charges on Deposit AccountsIn 2003, service charge income decreased
$187,000, or 1.5%, to $11.9 million. The decrease resulted primarily from
commercial checking account service charge income. Each month, commercial
checking customers receive a noncash earnings credit based on their account
balance and short-term interest rates. The earnings credit is used to reduce
the activity fees that are charged to the account. During 2003, commercial
checking accounts average balances increased resulting in a higher earnings
credit and lower net service charges.

Partially offsetting commercial checking
account fees was an increase in fees earned from returns and overdrafts. Our
ongoing efforts to market the High Performance Checking program continue to
increase the number of new personal checking accounts, which have a tendency to
have a high percentage of overdraft charges.

The increase from 2001 to 2002
resulted from similar factors. However, in 2002, interest rates declined
dramatically, thereby reducing the earnings credit and increasing net service
charge income.

Securities and Other Financial Instrument Gains/(Losses), NetIn 2003, net
security gains total $2.4 million, compared to $7.3 million and $7.8 million in
2002 and 2001, respectively.

Securities and Other Financial Instrument Gains/(Losses), Net

|                                                                    |  |      |        |      |  |      |       |  |  |   |       | 
|------------------------------------------------------------------- |  | ---- | ------ | ---- |  | ---- | ----- |  |  | - | ----- | 
|YEARS ENDED DECEMBER 31                                             |  | 2003 |        | 2002 |  | 2001
|                                                                    |  |      |        |      |  |     
|(dollars in thousands)                                              |  |      |        |      |  |     
|Gains on common stocks at Bank Holding Company                      |  | $    | 10,074 |      |  | $    | 951   |  |  | $ | 5,220 | 
|Charge for other than temporary impairment                        |  |      | (8,962 | )    |  |      |      |  |  |   |      | 
|Sales of securities at subsidiary bank                              |  |      | 694    |      |  |      | 3,188 |  |  |   | 698   | 
|Mark-to-market adjustments on non-hedge derivatives                 |  |      | 560    |      |  |      | 3,119 |  |  |   | 1,917 | 
|                                                                    |  |      |        |      |  |      |       |  |  |   |       | 
|Total Securities and Other Financial Instrument Gains/(Losses), Net |  | $    | 2,366  |      |  | $    | 7,258 |  |  | $ | 7,835 | 
|                                                                    |  |      |        |      |  |      |       |  |  |   |       | 

Gains on common stocks at Bank Holding CompanyGains on common stocks at the
Bank Holding Company relate to the common stock portfolio of various financial
industry companies held at the Bank Holding Company (see Common Stocks, Bank
Holding Company section for additional details). In 2003, Corus recognized
gains totaling $10.1 million compared to $951,000 and $5.2 million during 2002
and 2001, respectively. The 2003 gains reflect both a $7.3 million gain from
the actual sale of securities in the first quarter and a gain of $2.8 million
in the third quarter resulting from two stock-for-stock acquisition
transactions relating to investments held by Corus. These transactions, while
not taxable until the stock is sold, result in a book gain equal to the
difference between the value received in the stock of the acquirer and Corus
cost basis in the acquired companys stock.

Charge for other than temporary impairmentIn the first quarter of 2003,
Corus recorded a charge of
$9.0 million related to other than temporary declines in value of certain
common stocks held at the Bank Holding Company. It is important to point out
that this charge was not as a result of the Company selling the associated
stocks, but rather an accounting entry with no cash flow or tax implications.
This charge was recorded in accordance with SFAS No. 115, Accounting for
Certain Investments in Debt and Equity Securities, and as further defined by
the Securities and Exchange Commission Staff Accounting Bulletin No. 59,
Accounting for Noncurrent Marketable Equity Securites.

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CORUS BANKSHARES 2003 ANNUAL REPORT

As background, accounting rules require that investments be categorized as
trading, held-to-maturity (HTM), or available-for-sale (AFS). Trading
securities are those securities that are bought and held principally for the
purpose of selling them in the near term. HTM securities are those investments
which the company has the positive intent and ability to hold to maturity.
Finally, AFS securities are those investments not classified as either trading
or HTM. The common stocks held at the Bank Holding Company are classified and
accounted for as AFS securities.

The significance of how an investment is classified is reflected in how
unrealized gains/(losses) are treated in the accounting records and thus in the
companys financial statements. For trading securities, unrealized
gains/(losses) are recorded directly in the income statement each period. This
reflects the assumed short-term nature of these investments and the idea that
these securities are generally purchased with the objective of generating
profits on short-term differences in price. On the other hand, for HTM
securities, unrealized gains/(losses) are generally not recorded at all under
the assumption that any short-term fluctuations in value will ultimately
reverse by maturity. The accounting for AFS securities is somewhat of a middle
ground between trading and HTM. For AFS securities, changes in market value are
recorded each period on the balance sheet, on an after-tax basis directly in
equity as an item referred to as Other Comprehensive Income. These changes in
market value are not reflected in the income statement.

An exception to the above guidelines arises when unrealized losses are
determined to be other than temporary
(OTT). If an investment is determined to have experienced an OTT decline in
value, the loss must then be recognized in the income statement regardless of
how the investment is categorized. Indications of OTT declines in value include
prolonged periods of consistent unrealized losses or deterioration in the
financial condition or near-term prospects of the issuer. Corus general
practice for marketable equity securities is to recognize impairment losses on
individual securities when the security has been in a loss position at the
close of each trading day during six (6) consecutive months as of any quarter
end. Lastly, Corus evaluates its investments for OTT declines in value on a
lot-by-lot basis, meaning that if there are multiple purchases of a certain
security, each purchase is evaluated individually.

With all the preceding being said, it is important to note that while the
accounting rules require that we report short-term stock price declines as
other than temporary losses in the income statement, the reality is stock
prices  for even the finest and best-managed companies  rise and fall,
sometimes over very extended periods of time (such extended periods of time
can easily be multiples of a six-month time frame). The fact that a companys
shares fall in value for a period as short as six months is neither overly
concerning to us nor the only indicator of how the stock may fare in the
future. This is particularly true if the overall stock market has been
declining. Conversely, if a stock has been falling in the face of a generally
rising market, especially if this has been occurring over a protracted period
of time, this poor relative performance may well indicate a genuine problem
with the company and its prospects. Regardless, such a fundamental/economic
approach is not the way the accounting rules work.

Lastly, while we are required to report securities losses from these
other than temporary declines in value, we are not allowed to report
securities gains when those same securities recover in value. Case in point, as
of December 31, 2003, $8.7 million of the previously charged-off $9.0 million
has been recovered as the prices of the associated common stocks have risen.
Unfortunately, while Corus was required to record the $9.0 million charge as a
reduction to income, the recovery does not receive the same accounting
treatment, but must instead be

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CORUS BANKSHARES 2003 ANNUAL REPORT

recorded as an unrealized gain (as Other Comprehensive Income in Shareholders
Equity) and not recognized in income until the security is ultimately sold.
Unfortunately, this is another accounting disconnect that companies, and
their investors, must learn to live with.

Mark-to-market adjustments on non-hedge derivativesFor the twelve months ended
December 31, 2003, the Bank recorded a gain of $560,000 from what we refer to
as mark-to-market adjustments on non-hedge derivatives. Compared to 2002, this
represents a decline of $2.6 million. Due to their unusual nature, the basis
for these gains/(losses) requires additional explanation.

Like many banks, Corus utilizes derivatives to hedge its interest rate
risk. This is accomplished primarily via interest rate swaps (to effectively
convert fixed-rate loans and brokered CDs to floating rate) and interest rate
basis swaps (to effectively convert LIBOR-based floating rate loans to
Treasury-based floating-rate loans).

As of January 1, 2001, virtually all companies were required to adopt new
derivative accounting rules (known as SFAS No. 133). These rules require that
all derivative instruments be included on the balance sheet at market value. In
addition, the rules provide that if derivatives are paired-off against
specific assets and/or liabilities (the hedged items) and also pass an
additional succession of tests, then the income statement impact of any
periodic changes in the value of the derivatives is effectively offset by
changes in the value of the hedged items. Such derivatives are afforded what is
termed hedge accounting treatment. The rules are enormously complex, but
suffice it to say that even though the basis swaps we have entered into are
designed to hedge our interest rate risk  that is, regardless of the
accounting treatment the basis swaps are economic hedges  they do not qualify
for hedge accounting treatment and thus the impact of changes in the market
value of these instruments is reflected on our income statement as securities
gains/(losses). Our interest rate swaps, on the other hand, generally do
qualify for hedge accounting.

Since Corus basis swaps do not qualify for hedge accounting treatment,
there is no offset to the income statement impact of periodic changes in their
market value. Therefore, this impact is fully reflected as securities
gains/(losses) on the Companys income statement. Since this income does not
stem from having actually sold the instruments, it is subject to reversal based
on future changes in the market values. In fact, if Corus holds basis swaps to
maturity, which we generally do, the value of the instruments will ultimately
return to $0. What this means is that the cumulative gains or losses recognized
at any point in time would be temporary as they would ultimately reverse, such
that the cumulative gains and losses over the life of a basis swap would sum to
zero. However, in the event that Corus sells any basis swaps prior to maturity,
the cumulative gains or losses would not reverse.

As of December 31, 2003,
Corus has recorded net cumulative gains of $5.6 million related to
mark-to-market adjustments on non-hedge derivatives. While basis swaps in the
portfolio vary both in notional amounts and maturities, they will all have
matured by 2008. This means that absent any sales of existing swaps, the
previously recognized $5.6 million of securities gains will reverse in the
form of $5.6 million of securities losses between now and 2008. While
management can predict the eventual reversal of these gains, we cannot predict
in what periods or in what periodic amounts those reversals will occur.

Gain on Sale of Student LoansCorus completed its final phase of the student
loan sale for a gain of $2.2 million in April 2001. Including the first phase
of the sale completed in late 2000, Corus successfully sold over $460 million
of student loans for a net gain of nearly $25 million.

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CORUS BANKSHARES 2003 ANNUAL REPORT

Other Income

|                                                 |  |      |       |      |  |      |       |  |  |   |       | 
|------------------------------------------------ |  | ---- | ----- | ---- |  | ---- | ----- |  |  | - | ----- | 
|YEARS ENDED DECEMBER 31                          |  | 2003 |       | 2002 |  | 2001
|                                                 |  |      |       |      |  |     
|(dollars in thousands)                           |  |      |       |      |  |     
|Sale of trust and investment management business |  | $    |      |      |  | $    | 1,000 |  |  | $ | 111   | 
|Student loan servicing fee                       |  |      |      |      |  |      |      |  |  |   | 1,507 | 
|Other                                            |  |      | 2,676 |      |  |      | 2,756 |  |  |   | 2,968 | 
|                                                 |  |      |       |      |  |      |       |  |  |   |       | 
|Total Other Income                               |  | $    | 2,676 |      |  | $    | 3,756 |  |  | $ | 4,586 | 
|                                                 |  |      |       |      |  |      |       |  |  |   |       | 

In 2003, other income decreased $1.1 million, to $2.7 million. A $1.0 million
payment received in 2002 was associated with the sale of the trust and
investment management business in 2000. Corus agreed, in lieu of ongoing
contingent earn-out payments, to accept the one-time final payment of $1.0
million. The amount in 2001 reflects normal monthly accruals for the earn-out
payments. Other income also includes vault fees, ATM fees and other real estate
owned gains and losses.

In 2001, other income included a servicing fee, relating to a temporary
agreement associated with the sale of the student loan portfolio, which expired
in June 2001. As mentioned previously, Corus completed the sale of its student
loan portfolio in 2001. Corus accepted an agreement to continue servicing the
loans until an orderly transition could be accomplished. In accordance with the
agreement, Corus received $1.5 million in servicing fees.

Noninterest Expense

For 2003, total noninterest expense increased $5.1 million, or 10.7%, to $52.5
million. The major factor driving the increase was an increase in salaries and
employee benefits. Other factors contributing to the increase were net
occupancy and data processing. The increase was partially offset by a decrease
in depreciation expense. See discussion below for analysis by expense category.

Noninterest Expense

|                                       |  |      |        |      |  |      |        |        |  |        |        |   |  |           |       |           |  |  |        |   
|-------------------------------------- |  | ---- | ------ | ---- |  | ---- | ------ | ------ |  | ------ | ------ | - |  | --------- | ----- | --------- |  |  | ------ | --
|                                       |  |      |        |      |  |      |        |        |  |        |        |   |  | 2003/2002 |       | 2002/2001
|YEARS ENDED DECEMBER 31                |  | 2003 |        | 2002 |  | 2001 |        | CHANGE |  | CHANGE
|                                       |  |      |        |      |  |      |        |        |  |       
|(dollars in thousands)                 |  |      |        |      |  |      |        |        |  |       
|Salaries and employee benefits         |  | $    | 34,426 |      |  | $    | 29,672 |        |  | $      | 31,539 |   |  |           | 16.0  | %         |  |  | (5.9   | )%
|Net occupancy                          |  |      | 4,231  |      |  |      | 3,839  |        |  |        | 4,059  |   |  |           | 10.2  | %         |  |  | (5.4   | )%
|Data processing                        |  |      | 2,722  |      |  |      | 2,445  |        |  |        | 2,562  |   |  |           | 11.3  | %         |  |  | (4.6   | )%
|Depreciation  furniture and equipment |  |      | 1,823  |      |  |      | 2,448  |        |  |        | 2,000  |   |  |           | (25.5 | )%        |  |  | 22.4   | % 
|Goodwill amortization                  |  |      |       |      |  |      |       |        |  |        | 893    |   |  |           |      | %         |  |  | (100.0 | )%
|Other                                  |  |      | 9,331  |      |  |      | 9,068  |        |  |        | 10,047 |   |  |           | 2.9   | %         |  |  | (9.7   | )%
|                                       |  |      |        |      |  |      |        |        |  |        |        |   |  |           |       |           |  |  |        |   
|Total Noninterest Expense              |  | $    | 52,533 |      |  | $    | 47,472 |        |  | $      | 51,100 |   |  |           | 10.7  | %         |  |  | (7.1   | )%
|                                       |  |      |        |      |  |      |        |        |  |        |        |   |  |           |       |           |  |  |        |   
|Efficiency ratio(1)                    |  |      | 37.5   | %    |  |      | 40.9   | %      |  |        | 40.1   | % |  |           |       |           |  |  |        |   
|                                       |  |      |        |      |  |      |        |        |  |        |        |   |  |           |       |           |  |  |        |   

(1) Excludes goodwill amortization.

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CORUS BANKSHARES 2003 ANNUAL REPORT

Salaries and Employee BenefitsIn 2003, salaries and benefits increased $4.8
million, or 16.0%, compared to the prior year. The increase in salaries and
benefits resulted from two factors. First, officer salaries and bonuses
increased
$2.8 million compared to 2002. Corus commercial loan officers are compensated
primarily on a commission basis so strong loan growth naturally results in
increased compensation. Second, Corus began expensing stock options using the
fair-value method in 2003. Under the modified prospective method allowed by
SFAS No. 123/148, the expense is recorded beginning in the year of adoption.
Thus, prior year results reflect only those minimal amounts recorded in
accordance with the previous methodology. The increase in stock option expense
for 2003 compared to 2002 was
$1.6 million. Corus anticipates stock option expense in 2004 of $1.4 million.

In 2002, salary and benefits declined by $1.9 million, or 5.9%, compared
to 2001. The biggest factor driving the overall decline in salary and benefits
was the impact of the mark-to-market adjustments associated with the Commercial
Loan Officer Commission Program (the CLO Program). For 2002, the net impact
of these adjustments was a decrease to salaries and benefits expense of
$228,000 compared to an increase of $1.5 million for 2001, a variance of $1.7
million. Therefore, absent the CLO Program mark-to-market adjustments, overall
salary and benefits was essentially flat compared to 2001.

The CLO Program is a compensation plan whereby commissions may be earned
each year with a portion paid currently and the remainder deferred for up to
nine years (note that both the paid and deferred amounts are expensed in that
year). The deferred portion can be invested, at each participants option, in
among other instruments, Corus common stock. To the extent that commissions are
deferred in Corus stock, the Company repurchases an equal number of shares in
the open market. In this way, the Company has effectively hedged itself
against changes in the value of the stock between the deferral date and the
ultimate delivery date. In spite of the economics of the transaction, Corus had
previously been required to record an adjustment to income based on changes in
the market value of the deferred stock. Under SFAS No. 123/148, these
mark-to-market adjustments are no longer required beginning January 1, 2003,
the adoption date.

Corus continues to focus on effectively controlling compensation expense
by paying a limited number of talented people a premium over market salaries
rather than staffing at higher peer-group levels. This policy results in higher
employee productivity and an increased willingness to accept more
responsibility in carrying out Corus goals and objectives.

Net OccupancyIn 2003, net occupancy increased by $392,000, or 10.2%, to $4.2
million compared to 2002. Much of the increase is attributable to increases in
real estate taxes and building maintenance and repairs. In 2002, net occupancy
expense decreased by $220,000 compared to 2001. Contributing to the decline
were several items including rent expense, depreciation and utilities.

Data ProcessingIn 2003, data processing increased by $277,000, or 11.3%, to
$2.7 million compared to 2002. The increase was largely due to an increase in
incremental ATM/debit card transaction costs of $133,000 for the year. Other
factors contributing to the increase are expenses incurred relating to
customizing imaging statements and converting data processing systems.

In 2002, data processing declined by $117,000, or 4.6%, to $2.4 million
primarily due to the absence of expenses associated with servicing the student
loan portfolio, which was sold during 2001. Partially offsetting the decrease
was an increase in incremental ATM/debit card transaction expenses.

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CORUS BANKSHARES 2003 ANNUAL REPORT

Furniture and Equipment DepreciationIn 2003, depreciation of furniture and
equipment decreased from
$2.4 million to $1.8 million, a decrease of $625,000, or 25.5%. Corus utilizes
accelerated depreciation methods which, due to the purchase of a $1.6 million
document imaging and statement rendering system in 2002, resulted in an
unusually high amount of depreciation in 2002. In addition, 2003 reflects the
lower depreciation amounts associated with assets approaching the end of their
useful lives.

Goodwill AmortizationIn 2002, Corus discontinued the amortization of goodwill
upon the adoption of SFAS No. 142, Goodwill and Other Intangible Assets.
Refer to Note 1 of the Notes to Consolidated Financial Statements for
additional information on this accounting change.

Other ExpensesOther noninterest expense consists of various expenses, the most
significant being: audits & exams, stationery & supplies, legal & professional,
equipment repairs & maintenance, advertising, armored courier costs, postage,
and correspondent bank charges.

In 2003, other expenses increased by $263,000,
or 2.9%, to $9.3 million compared to 2002. The increase is attributable to
increases in legal and professional expenses associated with commercial
overdraft collection activities and an increase in equipment repairs &
maintenance for the year. This was partially offset by decreased expenses
related to lower levels of other real estate owned properties.

In 2002, other
expenses declined by $979,000, or 9.7%, to $9.1 million. The decrease partially
resulted from higher legal and professional expenses in 2001 related to
residential foreclosure costs. In addition, advertising cost related to
commercial lending and other operating expenses declined in 2002 as part of
Corus continued focus on cost control.

Efficiency RatioThe banking industry uses a standard known as the efficiency
ratio to measure a banks operational efficiency. The ratio is derived by
dividing gross operating expenses, less goodwill amortization, by the sum of
fully taxable equivalent net interest and other income, adjusted for securities
and other financial instrument gains and losses. Corus efficiency ratio was
37.5%, 40.9%, and 40.1% in 2003, 2002, and 2001, respectively.

Cost ManagementCost management is a fundamental element of Corus culture.
Management constantly reviews operating expenses to ensure that they are
minimized while maintaining a high level of quality customer service. Corus
remains committed to identifying additional reductions in costs while
maintaining superior customer service and stringent internal controls.

Income TaxesIncome tax expense was $29.4 million in 2003, compared to $24.6
million and $28.1 million in 2002 and 2001, respectively. The effective tax
rate was 33.5% in 2003, 33.3% in 2002, and 34.2% in 2001. The decline in the
effective tax rates in 2003 and 2002, as compared to 2001, was attributable to
the combination of higher dividend income and the absence of goodwill
amortization. Higher dividend income, of which only 30% is taxable to
corporations, results in a lower effective tax rate. Dividend income was 6.1%
and 6.5% of pretax income in 2003 and 2002, respectively, as opposed to 5.4% of
pretax income in 2001. Amortization of Corus goodwill is not tax deductible
and as such increases the effective tax rate. However, under new accounting
rules, no goodwill was amortized after 2001, thereby reducing the effective tax
rate in subsequent years. Refer to Note 9 of the Notes to Consolidated
Financial Statements for further information.

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CORUS BANKSHARES 2003 ANNUAL REPORT

Corus net deferred tax liability was $17.5 million at December 31, 2003,
compared with a net deferred tax liability of $7.2 million at December 31,
2002. The increase of $5.9 million in gross deferred tax assets during 2003 is
due to two factors. First, Corus recorded a $9.0 million charge in 2003 for the
other than temporary declines in value of certain stocks held at the Bank
Holding Company. This charge was not the result of Corus actually selling the
stocks and, as such, is not yet deductible for tax purposes. This increased
Corus deferred tax asset by $3.1 million. Second, Corus adopted SFAS No. 123,
Accounting for Stock-Based Compensation in 2003. Under SFAS No. 123, Corus is
required to expense the cost of stock options granted to employees. This
expense is not immediately deductible for tax purposes resulting in the
deferred tax asset of $2.0 million at December 31, 2003. The increase of $16.2
million in gross deferred tax liabilities is mainly due to an increase in
unrealized gains on Corus common stock portfolio.

InflationThe impact of inflation on a financial institution differs
significantly from that of an industrial company, as virtually all assets and
liabilities of a financial institution are monetary in nature. Monetary items,
such as cash, loans and deposits, are those assets and liabilities that are or
will be converted into a fixed number of dollars regardless of changes in
prices. Management believes the impact of inflation on financial results
depends upon Corus ability to react to changes in interest rates. Interest
rates do not necessarily move in the same direction, or at the same magnitude,
as the prices of other goods and services. Management seeks to manage the
relationship between interest-sensitive assets and liabilities in order to
protect against wide interest rate fluctuations, including those resulting from
inflation.

ASSETS

Loans

The following table details the composition of Corus loan portfolio:

Loan Portfolio

|                             |                  |                              |           |           |           |        |     |         |    |   |           |         |           |  |     |    |    | 
|---------------------------- | ---------------- | ---------------------------- | --------- | --------- | --------- | ------ | --- | ------- | -- | - | --------- | ------- | --------- |  | --- | -- | -- | 
|                             |                  |                              |           | 2003      |           | 2002  
|                             |                  |                              |           |           |           |       
|DECEMBER 31                  |                  | AMOUNT                       |           | PERCENT   |           | AMOUNT |     | PERCENT
|                             |                  |                              |           |           |           |        |     |        
|(dollars in thousands)       |                  |                              |           |           |           |        |     |        
|Commercial real estate:      |                  |                              |           |           |           |        |     |         |    |   |           |         |           |  |     |   
|                             | Non-construction |                              | $         | 1,207,015 |           |        |     | 50      | %  |   | $         | 989,146 |           |  |     | 57 | % 
|                             | Construction     |                              |           | 1,005,206 |           |        |     | 41      |    |   |           | 531,612 |           |  |     | 30 |   
|                             | Mezzanine        |                              |           | 53,790    |           |        |     | 2       |    |   |           | 32,092  |           |  |     | 2  |   
|                             |                  |                              |           |           |           |        |     |         |    |   |           |         |           |  |     |    |   
|                             |                  | Total Commercial Real Estate |           |           | 2,266,011 |        |     |         | 93 |   |           |         | 1,552,850 |  |     |    | 89 | 
|Commercial                   |                  |                              | 98,621    |           |           |        | 4   |         |    |   | 87,631    |         |           |  | 5   |   
|Residential first mortgage   |                  |                              | 30,656    |           |           |        | 1   |         |    |   | 38,828    |         |           |  | 2   |   
|Home equity                  |                  |                              | 29,738    |           |           |        | 1   |         |    |   | 51,078    |         |           |  | 3   |   
|Student                      |                  |                              | 8,105     |           |           |        | 1   |         |    |   | 10,950    |         |           |  | 1   |   
|Medical finance and consumer |                  |                              | 640       |           |           |        |    |         |    |   | 632       |         |           |  |    |   
|                             |                  |                              |           |           |           |        |     |         |    |   |           |         |           |  |     |    |   
|Total Loans                  |                  | $                            | 2,433,771 |           |           |        | 100 | %       |    | $ | 1,741,969 |         |           |  | 100 | % 
|                             |                  |                              |           |           |           |        |     |         |    |   |           |         |           |  |     |    |   

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CORUS BANKSHARES 2003 ANNUAL REPORT

Commercial Real Estate LendingCommercial real estate loans are comprised of
non-construction, construction, and mezzanine loans. The non-construction loans
are of relatively short duration, rarely more than five years in length, and
usually shorter. Some would call these bridge loans or mini-perms, but the
meaning of these labels is not standardized in the lending industry. These
loans are fully funded, or nearly so, when the loan closes. Construction loans
typically have maturities of 24 to 36 months and are funded throughout the term
as construction progresses. Mezzanine loans are essentially second mortgage
loans on commercial real estate projects, almost always subordinate to a Corus
construction or non-construction loan (as opposed to a third partys). Interest
rates charged for mezzanine loans are considerably higher than those charged
for typical commercial real estate loans, but they also carry additional risk.

At Corus, most of the commercial real estate lending activity finances one
of five types of real estate: condominium projects, hotels, office buildings,
apartment complexes, and (to a lesser degree than the prior four categories)
industrial buildings. Corus loans finance projects in major markets nationwide
with a target loan size from $10 million to $90 million.

At December 31, 2003, commercial real estate loans were $2.3 billion, an
increase of $713 million, or 46%, compared to the prior year. This, however,
only reflects actual balances outstanding, which excludes commitments. While
not yet funded, commitments, which consist of unfunded loan amounts and
commitment letters issued, are also a significant part of the loan portfolio.
Including commitments, the commercial loan portfolio totals $3.8 billion.

The following table provides a reconciliation of commercial real estate loans
outstanding to the total including commitments:

Commercial Real Estate Loans Outstanding Including Commitments

|                       |                    |        |           |           |      |        |     |         |  |   |           |           |  |  |     |    | 
|---------------------- | ------------------ | ------ | --------- | --------- | ---- | ------ | --- | ------- |  | - | --------- | --------- |  |  | --- | -- | 
|                       |                    |        | 2003      |           | 2002
|                       |                    |        |           |           |     
|DECEMBER 31            |                    | AMOUNT |           | PERCENT   |      | AMOUNT |     | PERCENT
|                       |                    |        |           |           |      |        |     |        
|(dollars in thousands) |                    |        |           |           |      |        |     |        
|Funded loans, net      |                    | $      | 2,266,011 |           |      |        | 59  | %       |  | $ | 1,552,850 |           |  |  | 56  | % 
|Commitments:           |                    |        |           |           |      |        |     |         |  |   |           |           |  |  |     |   
|                       | Loans              |        |           | 1,168,115 |      |        |     | 31      |  |   |           | 1,050,808 |  |  |     | 38 | 
|                       | Commitment letters |        |           | 375,865   |      |        |     | 10      |  |   |           | 152,164   |  |  |     | 5  | 
|                       | Letters of credit  |        |           | 10,502    |      |        |     |        |  |   |           | 20,682    |  |  |     | 1  | 
|                       |                    |        |           |           |      |        |     |         |  |   |           |           |  |  |     |   
|Total                  |                    | $      | 3,820,493 |           |      |        | 100 | %       |  | $ | 2,776,504 |           |  |  | 100 | % 
|                       |                    |        |           |           |      |        |     |         |  |   |           |           |  |  |     |   

Corus commitments are primarily comprised of unfunded commitments under
commercial real estate construction loans. While committed amounts are useful
for period-to-period comparisons, caution should be used in attempting to use
commitments as a basis for predicting future outstanding balances.

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CORUS BANKSHARES 2003 ANNUAL REPORT

The following tables break out loans by property type, location, and size:

Commercial Real Estate Loans  By Property Type

|                              |  |          |     |        |  |             |       |               |  |   |     |          |  |             |       |               |  |        |     |    |  |  |     |  |  |   |       |   |  |  |     |    |  |   |       |   |  |  |     |   
|----------------------------- |  | -------- | --- | ------ |  | ----------- | ----- | ------------- |  | - | --- | -------- |  | ----------- | ----- | ------------- |  | ------ | --- | -- |  |  | --- |  |  | - | ----- | - |  |  | --- | -- |  | - | ----- | - |  |  | --- | --
|                              |  | 2003     |     | 2002  
|                              |  |          |     |       
|                              |  |          |     |        |  | LOANS       |       | TOTAL         |  |   |     |          |  | LOANS       |       | TOTAL        
|                              |  |          |     |        |  | OUTSTANDING |       | COMMITMENT(1) |  |   |     |          |  | OUTSTANDING |       | COMMITMENT(1)
|                              |  | NUMBER   |     |        |  |             |       | NUMBER        |  |   |     |         
|DECEMBER 31                   |  | OF LOANS |     | AMOUNT |  | %           |       | AMOUNT        |  | % |     | OF LOANS |  | AMOUNT      |       | %             |  | AMOUNT |     | %  | 
|                              |  |          |     |        |  |             |       |               |  |   |     |          |  |             |       |               |  |        |     |   
|(dollars in millions)         |  |          |     |        |  |             |       |               |  |   |     |          |  |             |       |               |  |        |     |    |  |  |     |  |  |   |       |   |  |  |     |    |  |   |       |   |  |  |     |   
|Condo/loft conversion         |  |          | 58  |        |  | $           | 826   |               |  |   | 36  | %        |  | $           | 1,873 |               |  |        | 49  | %  |  |  | 27  |  |  | $ | 245   |   |  |  | 16  | %  |  | $ | 726   |   |  |  | 26  | % 
|Hotel                         |  |          | 40  |        |  |             | 533   |               |  |   | 24  | %        |  |             | 714   |               |  |        | 19  | %  |  |  | 40  |  |  |   | 537   |   |  |  | 35  | %  |  |   | 591   |   |  |  | 21  | % 
|Office                        |  |          | 22  |        |  |             | 373   |               |  |   | 16  | %        |  |             | 549   |               |  |        | 15  | %  |  |  | 30  |  |  |   | 459   |   |  |  | 29  | %  |  |   | 816   |   |  |  | 29  | % 
|Rental apartments             |  |          | 15  |        |  |             | 332   |               |  |   | 15  | %        |  |             | 429   |               |  |        | 11  | %  |  |  | 17  |  |  |   | 115   |   |  |  | 7   | %  |  |   | 408   |   |  |  | 15  | % 
|Warehouse/light industrial    |  |          | 12  |        |  |             | 68    |               |  |   | 3   | %        |  |             | 118   |               |  |        | 3   | %  |  |  | 11  |  |  |   | 23    |   |  |  | 1   | %  |  |   | 53    |   |  |  | 2   | % 
|Nursing homes                 |  |          | 7   |        |  |             | 60    |               |  |   | 3   | %        |  |             | 60    |               |  |        | 2   | %  |  |  | 10  |  |  |   | 72    |   |  |  | 5   | %  |  |   | 71    |   |  |  | 3   | % 
|Vacant land                   |  |          | 7   |        |  |             | 45    |               |  |   | 2   | %        |  |             | 47    |               |  |        | 1   | %  |  |  | 5   |  |  |   | 33    |   |  |  | 2   | %  |  |   | 34    |   |  |  | 1   | % 
|Retail                        |  |          | 4   |        |  |             | 8     |               |  |   |    | %        |  |             | 8     |               |  |        |    | %  |  |  | 5   |  |  |   | 20    |   |  |  | 1   | %  |  |   | 21    |   |  |  | 1   | % 
|Other                         |  |          | 1   |        |  |             | 1     |               |  |   |    | %        |  |             | 1     |               |  |        |    | %  |  |  | 5   |  |  |   | 16    |   |  |  | 1   | %  |  |   | 21    |   |  |  | 1   | % 
|Loans less than $1 million    |  |          | 184 |        |  |             | 45    |               |  |   | 2   | %        |  |             | 46    |               |  |        | 1   | %  |  |  | 251 |  |  |   | 55    |   |  |  | 4   | %  |  |   | 58    |   |  |  | 2   | % 
|Deferred fees/other discounts |  |          | N/A |        |  |             | (25   | )             |  |   | (1  | )%       |  |             | (25   | )             |  |        | (1  | )% |  |  | N/A |  |  |   | (22   | ) |  |  | (1  | )% |  |   | (22   | ) |  |  | (1  | )%
|                              |  |          |     |        |  |             |       |               |  |   |     |          |  |             |       |               |  |        |     |    |  |  |     |  |  |   |       |   |  |  |     |    |  |   |       |   |  |  |     |   
|Total                         |  |          | 350 |        |  | $           | 2,266 |               |  |   | 100 | %        |  | $           | 3,820 |               |  |        | 100 | %  |  |  | 401 |  |  | $ | 1,553 |   |  |  | 100 | %  |  | $ | 2,777 |   |  |  | 100 | % 
|                              |  |          |     |        |  |             |       |               |  |   |     |          |  |             |       |               |  |        |     |    |  |  |     |  |  |   |       |   |  |  |     |    |  |   |       |   |  |  |     |   

Commercial Real Estate Loans  By Major Metropolitan Area

|                               |               |                  |     |        |    |      |       |             |     |               |     |          |    |        |       |             |     |               |     |    |    |   |     |    |    |   |       |     |     |  |     |    |    |   |       |     |     |  |     |    |    |  
|------------------------------ | ------------- | ---------------- | --- | ------ | -- | ---- | ----- | ----------- | --- | ------------- | --- | -------- | -- | ------ | ----- | ----------- | --- | ------------- | --- | -- | -- | - | --- | -- | -- | - | ----- | --- | --- |  | --- | -- | -- | - | ----- | --- | --- |  | --- | -- | -- | -
|                               |               |                  |     | 2003   |    | 2002
|                               |               |                  |     |        |    |     
|                               |               |                  |     |        |    |      |       | LOANS       |     | TOTAL         |     |          |    |        |       | LOANS       |     | TOTAL        
|                               |               |                  |     |        |    |      |       | OUTSTANDING |     | COMMITMENT(1) |     |          |    |        |       | OUTSTANDING |     | COMMITMENT(1)
|                               |               |                  |     | NUMBER |    |      |       |             |     | NUMBER        |     |          |    |       
|DECEMBER 31                    |               | OF LOANS         |     | AMOUNT |    | %    |       | AMOUNT      |     | %             |     | OF LOANS |    | AMOUNT |       | %           |     | AMOUNT        |     | % 
|                               |               |                  |     |        |    |      |       |             |     |               |     |          |    |        |       |             |     |               |     |   
|(dollars in millions)          |               |                  |     |        |    |      |       |             |     |               |     |          |    |        |       |             |     |               |     |    |    |   |     |    |    |   |       |     |     |  |     |    |    |   |       |     |     |  |     |   
|California                     |               |                  |     |        |    |      |       |             |     |               |     |          |    |        |       |             |     |               |     |    |    |   |     |    |    |   |       |     |     |  |     |    |    |   |       |     |     |  |     |   
|                               | Los Angeles   |                  |     | 25     |    |      | $     | 355         |     |               |     | 16       | %  |        | $     | 505         |     |               |     | 13 | %  |   |     | 19 |    |   | $     | 202 |     |  |     | 13 | %  |   | $     | 363 |     |  |     | 13 | % 
|                               | San Francisco |                  |     | 7      |    |      |       | 102         |     |               |     | 4        | %  |        |       | 201         |     |               |     | 5  | %  |   |     | 4  |    |   |       | 41  |     |  |     | 3  | %  |   |       | 131 |     |  |     | 5  | % 
|                               | San Diego     |                  |     | 8      |    |      |       | 105         |     |               |     | 5        | %  |        |       | 142         |     |               |     | 4  | %  |   |     | 11 |    |   |       | 85  |     |  |     | 5  | %  |   |       | 109 |     |  |     | 4  | % 
|                               | Sacramento    |                  |     | 2      |    |      |       | 61          |     |               |     | 3        | %  |        |       | 76          |     |               |     | 2  | %  |   |     | 2  |    |   |       | 17  |     |  |     | 1  | %  |   |       | 76  |     |  |     | 3  | % 
|                               |               |                  |     |        |    |      |       |             |     |               |     |          |    |        |       |             |     |               |     |    |    |   |     |    |    |   |       |     |     |  |     |    |    |   |       |     |     |  |     |    |   
|                               |               | California Total |     |        | 42 |      |       |             | 623 |               |     |          | 28 | %      |       |             | 924 |               |     |    | 24 | % |     |    | 36 |   |       |     | 345 |  |     |    | 22 | % |       |     | 679 |  |     |    | 25 | %
|Washington, D.C.(2)            |               |                  | 21  |        |    |      | 358   |             |     |               | 16  | %        |    |        | 694   |             |     |               | 18  | %  |    |   | 16  |    |    |   | 200   |     |     |  | 13  | %  |    |   | 480   |     |     |  | 17  | % 
|New York City                  |               |                  | 21  |        |    |      | 261   |             |     |               | 11  | %        |    |        | 591   |             |     |               | 16  | %  |    |   | 9   |    |    |   | 104   |     |     |  | 7   | %  |    |   | 231   |     |     |  | 8   | % 
|Chicago                        |               |                  | 40  |        |    |      | 262   |             |     |               | 12  | %        |    |        | 463   |             |     |               | 12  | %  |    |   | 46  |    |    |   | 345   |     |     |  | 22  | %  |    |   | 456   |     |     |  | 16  | % 
|Chicago  less than $1 million |               |                  | 177 |        |    |      | 41    |             |     |               | 2   | %        |    |        | 43    |             |     |               | 1   | %  |    |   | 246 |    |    |   | 53    |     |     |  | 3   | %  |    |   | 56    |     |     |  | 2   | % 
|Miami                          |               |                  | 9   |        |    |      | 262   |             |     |               | 12  | %        |    |        | 461   |             |     |               | 12  | %  |    |   | 6   |    |    |   | 102   |     |     |  | 7   | %  |    |   | 238   |     |     |  | 9   | % 
|Texas                          |               |                  |     |        |    |      |       |             |     |               |     |          |    |        |       |             |     |               |     |    |    |   |     |    |    |   |       |     |     |  |     |    |    |   |       |     |     |  |     |   
|                               | Houston       |                  |     | 6      |    |      |       | 157         |     |               |     | 7        | %  |        |       | 177         |     |               |     | 5  | %  |   |     | 12 |    |   |       | 168 |     |  |     | 11 | %  |   |       | 212 |     |  |     | 8  | % 
|                               | Dallas        |                  |     | 2      |    |      |       | 27          |     |               |     | 1        | %  |        |       | 39          |     |               |     | 1  | %  |   |     | 2  |    |   |       | 16  |     |  |     | 1  | %  |   |       | 21  |     |  |     | 1  | % 
|                               | San Antonio   |                  |     |       |    |      |       |            |     |               |     |         | %  |        |       |            |     |               |     |   | %  |   |     | 1  |    |   |       | 6   |     |  |     |   | %  |   |       | 6   |     |  |     |   | % 
|                               |               |                  |     |        |    |      |       |             |     |               |     |          |    |        |       |             |     |               |     |    |    |   |     |    |    |   |       |     |     |  |     |    |    |   |       |     |     |  |     |    |   
|                               |               | Texas Total      |     |        | 8  |      |       |             | 184 |               |     |          | 8  | %      |       |             | 216 |               |     |    | 6  | % |     |    | 15 |   |       |     | 190 |  |     |    | 12 | % |       |     | 239 |  |     |    | 9  | %
|Other(3)                       |               |                  | 32  |        |    |      | 300   |             |     |               | 12  | %        |    |        | 453   |             |     |               | 12  | %  |    |   | 27  |    |    |   | 236   |     |     |  | 15  | %  |    |   | 420   |     |     |  | 15  | % 
|Deferred fees/other discounts  |               |                  | N/A |        |    |      | (25   | )           |     |               | (1  | )%       |    |        | (25   | )           |     |               | (1  | )% |    |   | N/A |    |    |   | (22   | )   |     |  | (1  | )% |    |   | (22   | )   |     |  | (1  | )%
|                               |               |                  |     |        |    |      |       |             |     |               |     |          |    |        |       |             |     |               |     |    |    |   |     |    |    |   |       |     |     |  |     |    |    |   |       |     |     |  |     |    |   
|Total                          |               |                  | 350 |        |    | $    | 2,266 |             |     |               | 100 | %        |    | $      | 3,820 |             |     |               | 100 | %  |    |   | 401 |    |    | $ | 1,553 |     |     |  | 100 | %  |    | $ | 2,777 |     |     |  | 100 | % 
|                               |               |                  |     |        |    |      |       |             |     |               |     |          |    |        |       |             |     |               |     |    |    |   |     |    |    |   |       |     |     |  |     |    |    |   |       |     |     |  |     |    |   



|(1) |  | Includes both funded and unfunded commitments, letters of credit, and outstanding commitment
letters.
|--- |  | -----------------------------------------------------------------------------------------------------
|   
|(2) |  | Includes northern Virginia and Maryland loans.                                                       
|   
|(3) |  | No other metropolitan area exceeds three percent of the total.                                       

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CORUS BANKSHARES 2003 ANNUAL REPORT

Commercial Real Estate Loans  By Total Commitment

|                              |  |          |     |        |  |             |       |               |  |   |     |          |  |             |       |               |  |        |     |    |  |  |     |  |  |   |       |   |  |  |     |    |  |   |       |   |  |  |     |   
|----------------------------- |  | -------- | --- | ------ |  | ----------- | ----- | ------------- |  | - | --- | -------- |  | ----------- | ----- | ------------- |  | ------ | --- | -- |  |  | --- |  |  | - | ----- | - |  |  | --- | -- |  | - | ----- | - |  |  | --- | --
|                              |  | 2003     |     | 2002  
|                              |  |          |     |       
|                              |  |          |     |        |  | LOANS       |       | TOTAL         |  |   |     |          |  | LOANS       |       | TOTAL        
|                              |  |          |     |        |  | OUTSTANDING |       | COMMITMENT(1) |  |   |     |          |  | OUTSTANDING |       | COMMITMENT(1)
|                              |  | NUMBER   |     |        |  |             |       | NUMBER        |  |   |     |         
|DECEMBER 31                   |  | OF LOANS |     | AMOUNT |  | %           |       | AMOUNT        |  | % |     | OF LOANS |  | AMOUNT      |       | %             |  | Amount |     | % 
|                              |  |          |     |        |  |             |       |               |  |   |     |          |  |             |       |               |  |        |     |   
|(dollars in millions)         |  |          |     |        |  |             |       |               |  |   |     |          |  |             |       |               |  |        |     |    |  |  |     |  |  |   |       |   |  |  |     |    |  |   |       |   |  |  |     |   
|$60 million and above         |  |          | 16  |        |  | $           | 462   |               |  |   | 20  | %        |  | $           | 1,122 |               |  |        | 29  | %  |  |  | 11  |  |  | $ | 158   |   |  |  | 10  | %  |  | $ | 719   |   |  |  | 26  | % 
|$40 million to $60 million    |  |          | 17  |        |  |             | 460   |               |  |   | 20  | %        |  |             | 802   |               |  |        | 21  | %  |  |  | 12  |  |  |   | 306   |   |  |  | 20  | %  |  |   | 586   |   |  |  | 21  | % 
|$20 million to $40 million    |  |          | 40  |        |  |             | 787   |               |  |   | 35  | %        |  |             | 1,126 |               |  |        | 30  | %  |  |  | 27  |  |  |   | 511   |   |  |  | 32  | %  |  |   | 744   |   |  |  | 27  | % 
|$1 million to $20 million     |  |          | 89  |        |  |             | 538   |               |  |   | 24  | %        |  |             | 748   |               |  |        | 20  | %  |  |  | 100 |  |  |   | 545   |   |  |  | 35  | %  |  |   | 692   |   |  |  | 25  | % 
|Less than $1 million          |  |          | 188 |        |  |             | 44    |               |  |   | 2   | %        |  |             | 47    |               |  |        | 1   | %  |  |  | 251 |  |  |   | 55    |   |  |  | 4   | %  |  |   | 58    |   |  |  | 2   | % 
|Deferred fees/other discounts |  |          | N/A |        |  |             | (25   | )             |  |   | (1  | )%       |  |             | (25   | )             |  |        | (1  | )% |  |  | N/A |  |  |   | (22   | ) |  |  | (1  | )% |  |   | (22   | ) |  |  | (1  | )%
|                              |  |          |     |        |  |             |       |               |  |   |     |          |  |             |       |               |  |        |     |    |  |  |     |  |  |   |       |   |  |  |     |    |  |   |       |   |  |  |     |   
|Total                         |  |          | 350 |        |  | $           | 2,266 |               |  |   | 100 | %        |  | $           | 3,820 |               |  |        | 100 | %  |  |  | 401 |  |  | $ | 1,553 |   |  |  | 100 | %  |  | $ | 2,777 |   |  |  | 100 | % 
|                              |  |          |     |        |  |             |       |               |  |   |     |          |  |             |       |               |  |        |     |    |  |  |     |  |  |   |       |   |  |  |     |    |  |   |       |   |  |  |     |   



|(1) |  | Includes both funded and unfunded commitments, letters of credit, and outstanding commitment
letters.
|--- |  | -----------------------------------------------------------------------------------------------------

While the average loan commitment at December 31, 2003 was $11 million, the top
33 loans averaged $58 million, and made up approximately 50% of the portfolio.

The following table shows the locations of new loans originated during 2003 and
2002:

Commercial Real Estate Loan Originations  By Location

|                       |  |          |    |        |  |   |       |          |  |        |     |        |  |  |    |  |  |   |       |  |  |  |     |  
|---------------------- |  | -------- | -- | ------ |  | - | ----- | -------- |  | ------ | --- | ------ |  |  | -- |  |  | - | ----- |  |  |  | --- | -
|                       |  | 2003     |    | 2002  
|                       |  |          |    |       
|                       |  | NUMBER   |    |        |  |   |       |          |  |        |     | NUMBER |  |  |    |  |  |   |       | 
|YEAR ENDED DECEMBER 31 |  | OF LOANS |    | AMOUNT |  | % |       | OF LOANS |  | AMOUNT |     | %     
|                       |  |          |    |        |  |   |       |          |  |        |     |       
|(dollars in millions)  |  |          |    |        |  |   |       |          |  |        |     |        |  |  |    |  |  |   |       |  |  |  |     |  
|California             |  |          | 21 |        |  | $ | 440   |          |  |        | 24  | %      |  |  | 14 |  |  | $ | 415   |  |  |  | 27  | %
|Washington, D.C.(1)    |  |          | 11 |        |  |   | 323   |          |  |        | 18  | %      |  |  | 12 |  |  |   | 361   |  |  |  | 23  | %
|Illinois               |  |          | 21 |        |  |   | 287   |          |  |        | 16  | %      |  |  | 29 |  |  |   | 223   |  |  |  | 15  | %
|Florida                |  |          | 4  |        |  |   | 253   |          |  |        | 14  | %      |  |  | 4  |  |  |   | 220   |  |  |  | 14  | %
|New York               |  |          | 9  |        |  |   | 249   |          |  |        | 13  | %      |  |  | 5  |  |  |   | 103   |  |  |  | 7   | %
|Texas                  |  |          | 5  |        |  |   | 59    |          |  |        | 3   | %      |  |  | 5  |  |  |   | 143   |  |  |  | 9   | %
|Other                  |  |          | 13 |        |  |   | 221   |          |  |        | 12  | %      |  |  | 7  |  |  |   | 78    |  |  |  | 5   | %
|                       |  |          |    |        |  |   |       |          |  |        |     |        |  |  |    |  |  |   |       |  |  |  |     |  
|Total                  |  |          | 84 |        |  | $ | 1,832 |          |  |        | 100 | %      |  |  | 76 |  |  | $ | 1,543 |  |  |  | 100 | %
|                       |  |          |    |        |  |   |       |          |  |        |     |        |  |  |    |  |  |   |       |  |  |  |     |  

(1)  Includes northern Virginia and Maryland loans.

| 58 |



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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT

The commercial real estate markets have been good for many years and Corus has
had particularly impressive results. We have actually had, in total, net
recoveries on this portfolio over the past 10 years. While our commercial real
estate portfolio continues to show minimal delinquencies and virtually no
losses, we recognize this sort of performance cannot persist indefinitely.

Commercial LendingCommercial loans are primarily loans to Corus customers in
the check cashing industry. Balances fluctuate based on seasonal cash
requirements and are generally secured by the equity of the check cashing
operation.

Other LendingWith regard to the remaining portfolio, residential first
mortgage, home equity, and student loan balances continue to decline as the
Bank continues plans to allow these portfolios to run off. Minimal new
originations are expected.

Securities Other Than Common Stocks

Corus current asset/liability management philosophy is that all current
security purchases are classified as available-for-sale or trading. This is due
to managements belief that virtually all securities should be available to be
sold in conjunction with our liquidity and asset/liability management
strategies.

At December 31, 2003, securities other than common stocks decreased $23.7
million, or 8.5%. At December 31, 2003, 45.4% of the carrying value of the
available-for-sale portfolio with stated maturities was scheduled to mature
within one year and 97.9% within five years.

| 59 |



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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT

Common Stocks, Bank Holding Company

At December 31, 2003, Corus held investments in the common stocks of 29
financial industry companies valued at $188.8 million, including net unrealized
gains of $93.2 million. This represents an increase in the portfolio value of
$41.0 million from the prior year. The increase in value is consistent with
the gains in financial service company stocks in 2003.

The following is a list of Corus holdings, by market value, as of December 31,
2003:

|                                 |  |        |  |             |         |       |  |           |        |               |         |  |      |   |       |  
|-------------------------------- |  | ------ |  | ----------- | ------- | ----- |  | --------- | ------ | ------------- | ------- |  | ---- | - | ----- | -
|                                 |  | TICKER |  |             |         |       |  | MARKET    |        | PERCENTAGE OF
|CORPORATION                      |  | SYMBOL |  | SHARES HELD |         | VALUE |  | PORTFOLIO
|                                 |  |        |  |             |         |       |  |          
|(dollars in thousands)           |  |        |  |             |         |       |  |           |        |               |         |  |      |   |       |  
|Comerica Inc.                    |  | CMA    |  |             | 339,300 |       |  | $         | 19,021 |               |         |  | 10.1 | %
|FleetBoston Financial Corp.      |  | FBF    |  |             | 423,960 |       |  |           | 18,506 |               |         |  | 9.8  |  
|MAF Bancorp Inc.                 |  | MAFB   |  |             | 281,550 |       |  |           | 11,797 |               |         |  | 6.3  |  
|JP Morgan Chase & Co.            |  | JPM    |  |             | 319,100 |       |  |           | 11,721 |               |         |  | 6.2  |  
|Charter One Financial Inc.       |  | CF     |  |             | 338,536 |       |  |           | 11,696 |               |         |  | 6.2  |  
|Amsouth Bancorporation           |  | ASO    |  |             | 466,015 |       |  |           | 11,417 |               |         |  | 6.0  |  
|Citigroup Inc.                   |  | C      |  |             | 225,000 |       |  |           | 10,921 |               |         |  | 5.8  |  
|Wachovia Corp.                   |  | WB     |  |             | 223,840 |       |  |           | 10,429 |               |         |  | 5.5  |  
|Bank of America Corp.            |  | BAC    |  |             | 99,873  |       |  |           | 8,033  |               |         |  | 4.3  |  
|US Bancorp                       |  | USB    |  |             | 268,870 |       |  |           | 7,895  |               |         |  | 4.2  |  
|Merrill Lynch & Co. Inc.         |  | MER    |  |             | 132,000 |       |  |           | 7,742  |               |         |  | 4.1  |  
|South Trust Corp.                |  | SOTR   |  |             | 195,900 |       |  |           | 6,414  |               |         |  | 3.4  |  
|Bank One Corp.                   |  | ONE    |  |             | 137,700 |       |  |           | 6,278  |               |         |  | 3.3  |  
|Morgan Stanley Dean Witter & Co. |  | MWD    |  |             | 82,000  |       |  |           | 4,745  |               |         |  | 2.5  |  
|Union Planters Corp.             |  | UPC    |  |             | 143,554 |       |  |           | 4,520  |               |         |  | 2.4  |  
|Compass Bancshares Inc.          |  | CBSS   |  |             | 108,750 |       |  |           | 4,279  |               |         |  | 2.3  |  
|Amcore Financial Inc.            |  | AMFI   |  |             | 142,500 |       |  |           | 3,865  |               |         |  | 2.0  |  
|Hibernia Corp.                   |  | HIB    |  |             | 154,200 |       |  |           | 3,625  |               |         |  | 1.9  |  
|Associated Banc Corp.            |  | ASBC   |  |             | 80,786  |       |  |           | 3,458  |               |         |  | 1.8  |  
|Suntrust Banks Inc.              |  | STI    |  |             | 48,000  |       |  |           | 3,432  |               |         |  | 1.8  |  
|Bank of New York Co. Inc.        |  | BK     |  |             | 100,000 |       |  |           | 3,312  |               |         |  | 1.8  |  
|Mellon Financial Corp.           |  | MEL    |  |             | 100,000 |       |  |           | 3,211  |               |         |  | 1.7  |  
|Banknorth Group Inc.             |  | BNK    |  |             | 90,000  |       |  |           | 2,928  |               |         |  | 1.6  |  
|Mercantile Bankshares Corp.      |  | MRBK   |  |             | 58,500  |       |  |           | 2,666  |               |         |  | 1.4  |  
|National City Corp.              |  | NCC    |  |             | 74,520  |       |  |           | 2,529  |               |         |  | 1.3  |  
|Commerce Bancshares Inc.         |  | CBSH   |  |             | 28,492  |       |  |           | 1,397  |               |         |  | 0.7  |  
|BB&T Corp.                       |  | BBT    |  |             | 33,736  |       |  |           | 1,304  |               |         |  | 0.7  |  
|Provident Bancshares Corp.       |  | PBKS   |  |             | 43,757  |       |  |           | 1,294  |               |         |  | 0.7  |  
|First Source Corp.               |  | SRCE   |  |             | 18,992  |       |  |           | 409    |               |         |  | 0.2  |  
|                                 |  |        |  |             |         |       |  |           |        |               |         |  |      |   |       |  
|Total                            |  |        |  |             |         |       |  |           |        | $             | 188,844 |  |      |   | 100.0 | %
|                                 |  |        |  |             |         |       |  |           |        |               |         |  |      |   |       |  

In 2003, Corus received dividends on the stock portfolio of $5.3 million
compared to $4.8 million in 2002. See Noninterest Income section on pages 48 -
52 for discussion of treatment of realized and unrealized gains and losses.

| 60 |



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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT

LIABILITIES AND SHAREHOLDERS EQUITY

Deposits

In 2003, total deposits increased $786.6 million, or 38.2%, to $2.8 billion.

Composition of Deposits

|                                 |  |        |           |         |  |        |     |         |  |   |           |  |  |  |     |  
|-------------------------------- |  | ------ | --------- | ------- |  | ------ | --- | ------- |  | - | --------- |  |  |  | --- | -
|                                 |  | 2003   |           | 2002   
|                                 |  |        |           |        
|DECEMBER 31                      |  | AMOUNT |           | PERCENT |  | AMOUNT |     | PERCENT
|                                 |  |        |           |         |  |        |     |        
|(dollars in thousands)           |  |        |           |         |  |        |     |         |  |   |           |  |  |  |     |  
|Money market                     |  | $      | 1,208,784 |         |  |        | 42  | %       |  | $ | 895,038   |  |  |  | 43  | %
|Brokered certificates of deposit |  |        | 596,831   |         |  |        | 21  |         |  |   | 258,409   |  |  |  | 13  |  
|Retail certificates of deposit   |  |        | 422,091   |         |  |        | 15  |         |  |   | 396,821   |  |  |  | 19  |  
|Demand                           |  |        | 227,960   |         |  |        | 8   |         |  |   | 216,551   |  |  |  | 11  |  
|NOW                              |  |        | 223,590   |         |  |        | 8   |         |  |   | 131,188   |  |  |  | 6   |  
|Savings                          |  |        | 167,146   |         |  |        | 6   |         |  |   | 161,766   |  |  |  | 8   |  
|                                 |  |        |           |         |  |        |     |         |  |   |           |  |  |  |     |  
|Total                            |  | $      | 2,846,402 |         |  |        | 100 | %       |  | $ | 2,059,773 |  |  |  | 100 | %
|                                 |  |        |           |         |  |        |     |         |  |   |           |  |  |  |     |  

Money market accounts increased by $313.7 million. In 2002, the Managed Money
Market account was introduced and continued to grow in 2003. This tiered
interest rate structure account has become an attractive option for many new
and existing customers.

Certificates of deposit increased by $363.7 million to $1.0 billion. The
majority of the increase came from brokered CDs, which increased by $338.4
million in 2003. Corus continues to use brokered CDs to fund loan growth (see
Liquidity section on page 69). Retail CDs increased by $25.3 million.

Demand
deposits increased by $11.4 million to $228.0 million. The increase is
primarily due to Corus High Performance Checking accounts, which continue to
catch the attention of new customers.

NOW accounts increased by $92.4 million to $223.6 million. During 2003,
Corus successfully introduced the Ultimate Interest Checking account, which
follows the same tiered interest rate structure as the Managed Money Market
account, but has the flexibility of a regular checking account.

Long-Term Debt  Trust Preferred Securities

In 2003, Corus formed five wholly owned finance subsidiaries for the sole
purpose of issuing what are commonly referred to as Trust Preferred securities.
Trust Preferred securities are a very common form of raising tax-advantaged
capital, especially for bank holding companies. While the legal structure of
Trust Preferred securities is unfortunately quite complicated, both the essence
of these securities and the basis for Corus decision to utilize them are
actually quite straightforward. Trust Preferred securities are essentially
long-term debt (30-year terms) with some unique features (discussed below).

The trusts sold a combined $172.5 million of Trust Preferred securities
via a private placement, the proceeds of which were lent to the Company and
secured by a subordinated debenture (subordinate to all other debt of the
Company but senior to common stock) issued by the Company to the trust. The
funds raised by the issuance of the Trust Preferred securities were, in turn,
infused into the Bank as additional capital, thus increasing the Banks legal
lending limit by $25.9 million.

| 61 |



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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT

As cited above, Trust Preferred securities have several unique attributes.
One of the most notable, and the key to the widespread issuance of Trust
Preferred securities, is that the Federal Reserve has historically allowed bank
holding companies to include, up to certain limits, Trust Preferred securities
in the regulatory calculation of capital (what is known as Tier 1 capital)
while providing the issuer with a tax deductible funding vehicle. In addition,
Trust Preferred securities: (a) have no financial covenants (except in the
event that the Company ever opts to defer payments, as described below); (b)
are not puttable back to Corus; and (c) include an option for Corus to call
them at par beginning five years after issuance and quarterly thereafter (or
earlier in the event of certain changes or amendments to regulatory
requirements or federal tax rules).

The Trust Preferred securities also grant Corus the right to defer
interest payments on the subordinated debentures, and distributions on the
Trust Preferred securities, for a period not to exceed 20 consecutive quarters
without the subordinated debentures or Trust Preferred securities going into
default (this provision is subject, however, to certain restrictions with
regard to Corus ability to make, among other things, dividends, distributions,
etc. to holders of Corus common stock). It should be noted that this provision
was not negotiated by Corus, but rather is a standard and required feature of
Trust Preferred securities in order for the Federal Reserve to allow such
instruments to be counted in capital at the bank holding company. While this
deferral option is present, Corus does not currently anticipate it would
exercise this option.

Combined issuance fees for the trusts totaled $1.6 million and are being
amortized over the 30-year lives of the securities. Finally, Corus has, through
various agreements, essentially fully and unconditionally guaranteed payment of
all amounts due under the Trust Preferred securities.

The Federal Reserve is
reassessing its position regarding the inclusion of Trust Preferred securities
as part of Tier 1 capital. Regardless of the outcome of the Federal Reserves
deliberations, the Company will continue to have regulatory capital well in
excess of that required to be well-capitalized. Corus capital category is
determined solely for the purpose of applying prompt corrective action and that
capital category may not constitute an accurate representation of Corus
overall financial condition or prospects.

Shareholders Equity

At December 31, 2003, and 2002, Shareholders Equity was as follows:

|                                       |  |      |         |      |  |   |         | 
|-------------------------------------- |  | ---- | ------- | ---- |  | - | ------- | 
|DECEMBER 31                            |  | 2003 |         | 2002
|                                       |  |      |         |     
|(dollars in thousands)                 |  |      |         |      |  |   |         | 
|Common stock                           |  | $    | 1,402   |      |  | $ | 1,412   | 
|Surplus                                |  |      | 16,942  |      |  |   | 16,668  | 
|Equity  options outstanding           |  |      | 5,670   |      |  |   |        | 
|Retained earnings                      |  |      | 460,458 |      |  |   | 430,482 | 
|Accumulated other comprehensive income |  |      | 61,708  |      |  |   | 33,479  | 
|                                       |  |      |         |      |  |   |         | 
|Total Shareholders Equity             |  | $    | 546,180 |      |  | $ | 482,041 | 
|                                       |  |      |         |      |  |   |         | 

During 2003, Corus repurchased and retired 231,200 shares at an average price
of $22.68 per share. These repurchases were made under a 1,000,000 common share
repurchase program approved by the Board of Directors in November 1999. As of
December 31, 2003, there were 586,850 remaining shares authorized for
repurchase under this program.

| 62 |



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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT

The increase in the surplus account is the result of several factors.
First, deferred compensation associated with the Commercial Loan Officer
Commission Program (the CLO Program) increased surplus by
$2.9 million. Under the CLO Program, a portion of the commissions earned is
deferred, some of which in Corus common stock. Deferrals in stock are
initially recorded as additional surplus. Upon issuance, the par value of the
stock is reclassified to common stock. Second, Corus employees exercised stock
options during the year, which increased surplus by $586,000. Finally, almost
entirely offsetting the above amounts was the impact of adopting the fair-value
based method of accounting for stock compensation.

The increase in Equity  options outstanding was entirely the result of
changing to the fair-value based method of accounting for stock compensation
under SFAS No. 123/148. The balance at December 31, 2003, represents the fair
value, based on the Black Scholes valuation model, of all outstanding vested
stock options.

During 2003, Corus Board of Directors approved dividend payments to
shareholders of $0.83 per share. The dividends declared totaled $23.3 million
in 2003. As previously announced, Corus tripled its dividend in the second
quarter of 2003 in response to new tax legislation.

Finally, accumulated other
comprehensive income increased by $28.2 million, driven by a $43.4 million
increase in unrealized security gains on available-for-sale securities. These
increases are consistent with overall gains in the financial markets during
2003.

Various measures of capital were as follows:

|                             |  |        |         |       |  |        |      |       |  |   |         |  |  |  |      |  
|---------------------------- |  | ------ | ------- | ----- |  | ------ | ---- | ----- |  | - | ------- |  |  |  | ---- | -
|                             |  | 2003   |         | 2002 
|                             |  |        |         |      
|DECEMBER 31                  |  | AMOUNT |         | RATIO |  | AMOUNT |      | RATIO
|                             |  |        |         |       |  |        |      |      
|(dollars in thousands)       |  |        |         |       |  |        |      |       |  |   |         |  |  |  |      |  
|Common equity(1)             |  | $      | 546,180 |       |  |        | 15.0 | %     |  | $ | 482,041 |  |  |  | 18.4 | %
|Tangible common equity(2)    |  |        | 541,657 |       |  |        | 14.9 |       |  |   | 477,518 |  |  |  | 18.3 |  
|Tier 1 leverage(3)           |  |        | 639,931 |       |  |        | 18.7 |       |  |   | 444,039 |  |  |  | 17.3 |  
|Tier 1 risk-based capital(4) |  |        | 639,931 |       |  |        | 17.9 |       |  |   | 444,039 |  |  |  | 16.8 |  
|Total risk-based capital(5)  |  |        | 730,829 |       |  |        | 20.5 |       |  |   | 497,916 |  |  |  | 18.9 |  



|(1) |  | Common equity is computed in accordance with generally accepted accounting
principles, which includes unrealized gains/(losses) on available-for-sale
securities. The ratio is common equity to total year-end assets.                                                                                                                
|--- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|   
|(2) |  | Common equity less goodwill; computed as a ratio to total year-end assets
less goodwill.                                                                                                                                                                                                                                              
|   
|(3) |  | Tier 1 capital, which is shareholders equity less goodwill, disallowed
portion of deferred income taxes and unrealized gains on available-for-sale
securities; computed as a ratio to average fourth-quarter assets less goodwill,
disallowed portion of deferred income taxes and unrealized gains on
available-for-sale securities.
|   
|(4) |  | Tier 1 capital; computed as a ratio to
risk-adjusted assets.                                                                                                                                                                                                                                                                          
|   
|(5) |  | Tier 1 capital plus qualifying loan loss allowance and SFAS No. 115 gain;
computed as a ratio to risk-adjusted assets.                                                                                                                                                                                                                

| 63 |



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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT

CREDIT RISK AND ASSET QUALITY

Nonperforming Assets

Nonperforming loans are nonaccrual loans, restructured loans and 90 days or
more past due loans still accruing interest.

Nonperforming Assets

|                                              |                                   |                                    |        |       |        |   |        |       |       | 
|--------------------------------------------- | --------------------------------- | ---------------------------------- | ------ | ----- | ------ | - | ------ | ----- | ----- | 
|DECEMBER 31                                   |                                   | 2003                               |        | 2002 
|                                              |                                   |                                    |        |      
|(dollars in thousands)                        |                                   |                                    |        |       |        |   |        |      
|Nonaccrual loans:                             |                                   |                                    |        |       |        |   |        |      
|                                              | CRE non-construction              |                                    | $      | 7,077 |        |   | $      |      |      
|                                              | CRE construction                  |                                    |        |      |        |   |        |      |      
|                                              | CRE mezzanine                     |                                    |        | 741   |        |   |        | 4,504 |      
|                                              | Commercial                        |                                    |        |      |        |   |        |      |      
|                                              | Residential real estate and other |                                    |        | 78    |        |   |        | 304   |      
|                                              |                                   |                                    |        |       |        |   |        |       |      
|                                              |                                   | Total Nonaccrual                   |        |       | 7,896  |   |        |       | 4,808 | 
|Troubled debt restructurings:                 |                                   |                                    |        |       |        |   |        |      
|                                              | CRE non-construction              |                                    |        |      |        |   |        |      |      
|                                              | CRE construction                  |                                    |        | 6,436 |        |   |        |      |      
|                                              | CRE mezzanine                     |                                    |        |      |        |   |        |      |      
|                                              | Commercial                        |                                    |        |      |        |   |        |      |      
|                                              | Residential real estate and other |                                    |        |      |        |   |        | 62    |      
|                                              |                                   |                                    |        |       |        |   |        |       |      
|                                              |                                   | Total Troubled Debt Restructurings |        |       | 6,436  |   |        |       | 62    | 
|Loans 90 days or more past due:               |                                   |                                    |        |       |        |   |        |      
|                                              | CRE non-construction              |                                    |        | 46    |        |   |        |      |      
|                                              | CRE construction                  |                                    |        |      |        |   |        |      |      
|                                              | CRE mezzanine                     |                                    |        |      |        |   |        |      |      
|                                              | Commercial                        |                                    |        |      |        |   |        |      |      
|                                              | Residential real estate and other |                                    |        | 1,190 |        |   |        | 1,648 |      
|                                              |                                   |                                    |        |       |        |   |        |       |      
|                                              |                                   | Total 90 Days or More Past Due     |        |       | 1,236  |   |        |       | 1,648 | 
|Total nonperforming loans:                    |                                   |                                    |        |       |        |   |        |      
|                                              | CRE non-construction              |                                    |        | 7,123 |        |   |        |      |      
|                                              | CRE construction                  |                                    |        | 6,436 |        |   |        |      |      
|                                              | CRE mezzanine                     |                                    |        | 741   |        |   |        | 4,504 |      
|                                              | Commercial                        |                                    |        |      |        |   |        |      |      
|                                              | Residential real estate and other |                                    |        | 1,268 |        |   |        | 2,014 |      
|                                              |                                   |                                    |        |       |        |   |        |       |      
|                                              |                                   | Total Nonperforming Loans          |        |       | 15,568 |   |        |       | 6,518 | 
|                                              | Other real estate owned           |                                    |        | 66    |        |   |        | 800   |      
|                                              |                                   |                                    |        |       |        |   |        |       |      
|Total Nonperforming Assets                    |                                   | $                                  | 15,634 |       |        | $ | 7,318  |      
|                                              |                                   |                                    |        |       |        |   |        |       |      
|Nonperforming loans/Total loans               |                                   |                                    | 0.64   | %     |        |   | 0.37   | %    
|Nonperforming assets/Total assets             |                                   |                                    | 0.43   | %     |        |   | 0.28   | %    
|Allowance for loan losses/Nonperforming
loans |                                   |                                    | 234.12 | %     |        |   | 561.97 | %    

| 64 |



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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT

Total nonperforming assets increased compared to December 2002 by $8.3 million
to $15.6 million. The increase is primarily due to an increase in Troubled Debt
Restructurings (TDRs). A TDR is a loan that was restructured in such a way as
to provide the borrower with some form of concession relative to market absent
a concession from the borrower that is deemed to be approximately proportionate
to the lenders concession. Typically, the lenders concession is in the form
of a lower interest rate, an extended term or forgiven principal or interest. A
borrowers concession often comes in the form of additional loan paydowns
and/or additional collateral.

A TDR oftentimes results from situations where the borrower is
experiencing financial problems and expects to have difficulty complying with
the original terms of the loan. However, once the loan is restructured in a
TDR, the prospects of collecting all principal and interest on that loan
generally improve (as the borrowers loan rate and, thus, loan payments are
reduced), albeit at somewhat less favorable terms to the lender. However, the
point to remember is that once a loan becomes a TDR, it generally becomes a
safer loan.

With that said, Corus is required to report the balance of any TDRs under
the nonperforming asset category which would seem to imply, in some way, that
these loans are not performing. However the two loans  one is an office loan
and the other a residential development loan  that constitute the $6.4
million construction TDR balance are not only both current in terms of required
payments, but also are considered to be well collateralized. Management will
continue to monitor these loans closely.

In addition to the increase in TDRs, a $7.1 million loan was placed on
nonaccrual in May 2003. Foreclosure proceedings have been initiated against the
borrower, however, management believes the loan is well secured, with no
expected loss.

Allowance for Loan Losses

The allowance for loan losses is based on managements analysis of individual
loans, prior and current loss experience, delinquency levels, overall growth in
the portfolio, current economic conditions, and other factors.

Allowance for Loan Losses

|                                   |                              |      |        |      |   |      |        |        |   |   |        |     | 
|---------------------------------- | ---------------------------- | ---- | ------ | ---- | - | ---- | ------ | ------ | - | - | ------ | --- | 
|YEAR ENDED DECEMBER 31             |                              | 2003 |        | 2002 |   | 2001
|                                   |                              |      |        |      |   |     
|(dollars in thousands)             |                              |      |        |      |   |      |        |        |   |   |        |    
|Balance at January 1               |                              | $    | 36,629 |      |   | $    | 40,457 |        |   | $ | 39,601 |    
|Provision for loan losses          |                              |      |       |      |   |      |       |        |   |   |       |    
|Charge-offs                        |                              |      | (3,295 | )    |   |      | (6,057 | )      |   |   | (3,632 | )  
|Recoveries                         |                              |      | 3,114  |      |   |      | 2,229  |        |   |   | 4,488  |    
|                                   |                              |      |        |      |   |      |        |        |   |   |        |    
|                                   | Net (Charge-offs)/Recoveries |      |        | (181 | ) |      |        | (3,828 | ) |   |        | 856 | 
|                                   |                              |      |        |      |   |      |        |        |   |   |        |    
|Balance at December 31             |                              | $    | 36,448 |      |   | $    | 36,629 |        |   | $ | 40,457 |    
|                                   |                              |      |        |      |   |      |        |        |   |   |        |    
|Allowance as a percentage of loans |                              |      | 1.50   | %    |   |      | 2.10   | %      |   |   | 2.74   | %  

| 65 |



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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT

In 2003, there was no provision for loan losses. Management believes this was
appropriate given the results of managements analysis and the balance of the
allowance at December 31, 2003. For additional discussion of managements
analysis of the Allowance for Loan Loss, see Note 1 of the Notes to
Consolidated Financial Statements.

Net (Charge-off)/Recovery Detail

|                                   |  |      |      |      |  |      |        |   |  |   |        |  
|---------------------------------- |  | ---- | ---- | ---- |  | ---- | ------ | - |  | - | ------ | -
|YEAR ENDED DECEMBER 31             |  | 2003 |      | 2002 |  | 2001
|                                   |  |      |      |      |  |     
|(dollars in thousands)             |  |      |      |      |  |      |        |   |  |   |        |  
|Overdraft  check cashing          |  | $    | (507 | )    |  | $    | (2,660 | ) |  | $ |       |  
|Commercial  check cashing         |  |      | (252 | )    |  |      | (559   | ) |  |   | (1     | )
|Residential first mortgage         |  |      | (17  | )    |  |      | (38    | ) |  |   | 3      |  
|Commercial real estate             |  |      |     |      |  |      | 17     |   |  |   | 10     |  
|Medical finance and consumer       |  |      | 17   |      |  |      | 15     |   |  |   |       |  
|Student                            |  |      | 90   |      |  |      | 48     |   |  |   | 2,712  |  
|Home equity                        |  |      | 488  |      |  |      | (651   | ) |  |   | (1,868 | )
|                                   |  |      |      |      |  |      |        |   |  |   |        |  
|Total Net (Charge-offs)/Recoveries |  | $    | (181 | )    |  | $    | (3,828 | ) |  | $ | 856    |  
|                                   |  |      |      |      |  |      |        |   |  |   |        |  

Net charge-offs associated with the services provided by the Company to
customers in the check cashing business totaled $759,000 and $3.2 million in
2003 and 2002, respectively. Credit problems with four customers were
discovered in 2002 after the voluntary departure of a bank officer responsible
for supervision of these accounts. These losses are the first the Bank has
experienced in nearly twenty years of servicing the check cashing industry.
Additional controls and procedures with respect to the extension of credit to
customers in this segment have been implemented and additional charge-offs of
this magnitude are not anticipated.

The home equity net recoveries of $488,000
in 2003 reflect the efforts of our residential real estate department personnel
to recover as much as possible of the previously charged off amounts.

The student loan recoveries of $2.7 million in 2001 consist almost
entirely of recoveries related to the settlement of a lawsuit in 2000.
Collection of these recoveries was essentially completed as of December 31,
2001.

Independent Loan Review

Management contracts for an independent review of its commercial and commercial
real estate loan portfolios. This review examines Corus loan grading and
problem loan identification systems. The loan review function was performed by
Crowe Chizek and Company LLC in 2003. The loan review provides verification
that risk assessments and problem loan identification systems are functioning
adequately. Two reviews were performed in 2003, each covering more than 40% of
the total commitments outstanding (funded plus unfunded loan commitments).

| 66 |



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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT CRITICAL ACCOUNTING POLICIES Management has determined that one particular accounting policy requires a high
level of judgment: the assessment of the Allowance for Loan Losses (the
Allowance). The Allowance is based upon quarterly reviews. These reviews
include an assessment of the loan portfolio and include reviews of both
specific credits and an overall assessment. Specific reviews are performed in
accordance with SFAS No. 114, Accounting by Creditors for Impairment of a
Loan, and can result in a specific reserve for certain impaired loans. For
those loans not specifically reviewed, an assessment is performed by loan type
(i.e., commercial, commercial real estate, construction, home equity,
residential first mortgage, etc.) to determine an inherent loss rate. The
inherent loss rate is based primarily on a combination of prior loss experience
and delinquency levels (current vs. historical). In those cases where, due to
insufficient historical data, Corus loss and delinquency experience may not
accurately reflect the inherent losses in a segment of the portfolio, Corus
will utilize the respective historical rates as published by the Federal
Deposit Insurance Corporation (FDIC) in its Quarterly Banking Profile
publication. For commercial real estate loans, Corus utilizes the historical
FDIC loss and delinquency rates. Additional factors are also considered including the level of problem and
potential problem loans, trends in volume and terms of loans, changes in risk
selection and underwriting standards, experience, ability and depth of lending
management, and economic and industry
conditions.      The assessment as to the
adequacy of the allowance for loan losses is grounded by the assumption that
historical experience is a good predictor of future performance. This
assumption, while supported by guidance provided by the Financial Accounting
Standards Board, the Office of the Comptroller of the Currency, and the
Securities and Exchange Commission, may not ultimately be correct. In that
event, estimates of inherent losses may differ from actual results. COMMERCIAL REAL ESTATE RISK DISCLOSURE The following disclosure is not computed in accordance with generally accepted
accounting principles (GAAP) and is considered a non-GAAP disclosure.
Management believes that this presentation, while not in accordance with GAAP,
provides useful insight into how management analyzes and quantifies risk and
determines the appropriate level of capital. Management has made a concerted effort to distill the numerous objective,
as well as subjective, risks inherent in the commercial real estate (CRE)
loans we originate into a rigorous system to analyze and quantify risk. At its
core, this system takes the form of management and loan officers estimating a
loans Probability of Default (POD) and its Loss Given Default (LGD) if a
serious recession should occur. This point bears repeating  the POD and LGD
estimates are not based on todays market conditions, instead they are arrived
at by stressing all major assumptions regarding the cash flow and/or values
of the underlying real estate down to levels that could manifest themselves
during a serious recession. As a proxy, we use, among other things, the
extreme declines in CRE property values witnessed during the late 1980s and
early 1990s. Typically, we assume that office and hotel projects will be worth
only 50% to 60% of their cost (not appraised value) and we typically assume
that rental and for-sale housing will be worth 60% to 80% of cost. Keep in mind
that while these are the typical discounts, each loan is analyzed individually
and may have discounts larger or smaller than mentioned above. Lastly, it is
important to realize that we could well have nonperforming loans and/or
charge-offs in economic conditions other than what might be characterized as | 67 |




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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT serious. While Corus has attempted to be conservative in its assessment of
potential defaults and losses, it is conceivable that actual defaults and/or
losses may be greater, perhaps materially, than estimated. Following is a table that summarizes the total size of our CRE loan portfolio,
the weighted average POD and LGD percentages, and the resulting implied CRE
loans that could default and losses that could occur. DECEMBER 31
    
    2003
    
    2002(dollars in millions)CRE LOANS & UNFUNDED COMMITMENTSCRE loans outstanding
    
    $
    2,266
    
    
    $
    1,553Unfunded commitments
    
    
    1,554
    
    
    
    1,224CRE Loans Plus Unfunded Commitments
    
    $
    3,820
    
    
    $
    2,777POTENTIAL DEFAULTS & LOSSESCRE loans plus unfunded commitments
    
    $
    3,820
    
    
    $
    2,777Weighted average Probability of Default (POD)(1)
    
    
    14.4
    %
    
    
    14.9
    %Potential CRE Loans That Could Default
    
    
    550
    
    
    
    414Weighted average Loss Given Default (LGD)(1)
    
    
    16.4
    %
    
    
    17.4
    %Potential Losses That Could Occur
    
    $
    90
    
    
    $
    72NONPERFORMING & NONACCRUAL LOANSPotential CRE loans that could default
    
    $
    550
    
    
    $
    414Potential losses that could occur
    
    
    (90
    )
    
    
    (72
    )Potential Remaining CRE NPL Balances
    
    
    460
    
    
    
    342Percentage that could be nonaccrual(2)
    
    
    100
    %
    
    
    100
    %Potential Nonaccrual CRE NPL Balances
    
    $
    460
    
    
    $
    342
  (1)
    The POD and LGD estimates are not based on todays market conditions,
instead they are arrived at by stressing all major assumptions regarding the
cash flow and/or values of the underlying real estate down to levels that could
manifest themselves during a serious recession.  (2)
    Not necessarily all nonperforming loans would be nonaccrual; however, in
order to be conservative we will assume 100% of the above nonperforming loans
are nonaccrual. Management believes that the declines in the POD and LGD factors from 2002 to
2003 reflect, in aggregate, a safer portfolio. | 68 |




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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT LIQUIDITY Parent Company The parent company had $194.7 million of cash and marketable equity securities
at December 31, 2003. Corus has effectively pledged approximately $75 million
of equity securities to secure a $35 million bank loan. Furthermore, the
subsidiary bank had $102.6 million available to pay in dividends to the parent
company without prior regulatory approval while maintaining well-capitalized
status.      Corus capital category is determined solely for the purpose of
applying prompt corrective action and that capital category may not constitute
an accurate representation of Corus overall financial condition or prospects. Subsidiary Bank Corus liquidity policy is to ensure the availability of sufficient funds to
accommodate the needs of borrowers and depositors at all times. This objective
is achieved primarily through the maintenance of liquid assets. Liquid assets
include cash and cash equivalents, federal funds sold, and marketable
securities that can be sold quickly without a material loss of principal. At
December 31, 2003, liquid assets totaled $989.6 million, or 28.6%, of the
subsidiary banks total assets. At December 31, 2003, Corus had outstanding commitments of $1.6 billion.
Of that figure, $1.5 billion represented unfunded construction loans.
Management anticipates the majority of those commitments will be drawn down
over the next 36 months. The liquidity to fund those commitments will first
come from normal paydowns/payoffs on the existing loan portfolio and then, to
the extent necessary, from additional issuance of brokered certificates of
deposit (BRCD). A portion of Corus current funding comes from BRCD and to the extent that
total loans outstanding grow in the future, management expects to fund much, if
not all, of that growth with BRCD. In order to avoid the liquidity risk of an
overly significant portion maturing during any given year, Corus works to have
the BRCD maturities staggered, ranging from 1 to 7 years. To further mitigate
liquidity risk, Corus liquidity policy requires that the Bank hold more liquid
assets as the level of BRCD increases. As of December 31, 2003, BRCD totaled
$597 million. The Bank has established a BRCD limit such that BRCD will not
exceed 41% of total deposits (i.e., retail deposits and BRCD). Based on current
deposit levels, this implies a maximum amount of BRCD of $1.5 billion. MARKET RISK MANAGEMENT Corus operations are subject to risk resulting from interest rate fluctuations
to the extent that there is a difference between the amount of interest-earning
assets and the amount of interest-bearing liabilities that are
prepaid/withdrawn, mature, or reprice in specified periods. The principal
objective of Corus asset/liability management activities is to provide maximum
levels of net interest income while maintaining acceptable levels of interest
rate and liquidity risk and facilitating funding requirements. Corus utilizes
an interest rate sensitivity model as the primary quantitative tool in
measuring the amount of interest rate risk that is present at the end of each
quarter. The model uses income simulation to quantify the effects of various
interest rate scenarios on the projected net interest income over a five-year
period. Factored into the modeling is the use of derivative financial
instruments, which may include basis swaps, interest rate swaps, floors, and
options. | 69 |




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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT Corus projected sensitivity to changes in interest rates has fallen,
under all scenarios, since December 31, 2002. The primary cause of this
reduction is the increasing impact of in-the-money interest rate floors
(i.e., floors which are generating interest income at current interest rates)
embedded within some of our floating-rate commercial real estate loans. The
growth in in-the-money loan floors limits the amount these loans will reprice
downward when interest rates decline, thus reducing the Banks exposure to
falling rates. Conversely though, when interest rates increase, these
floating-rate loans behave as fixed-rate loans until short-term interest
rates increase to such a level that the floor is no longer acting to fix the
loans interest rate. The result is a higher level of current interest income
across all scenarios. As a consequence though, the projected change in net
interest income (as a percent of net interest income under constant rates)
under the rising rate scenarios shown below is not as great as would have been
the case if no loans had in-the-money floors. Importantly, the Banks
interest rate risk models project continued growth in commercial real estate
loans and assume that a growing percentage of the Banks future commercial real
estate loans will have in-the-money floors (assuming short-term rates stay at
such historically low levels). Interest rate sensitivity was as follows: Rate Shock Amount(1)
    
    -75 bp
    
    -50 bp
    
    0 bp
    
    +50 bp
    
    +100 bp
    
    +200 bp
    
    +300 bpPercent change in the next twelve months
net interest income vs. constant ratesDecember 31, 2003
    
    
    1.5
    %
    
    
    1.3
    %
    
    
    
    
    
    
    (2.8
    )%
    
    
    (4.3
    )%
    
    
    (1.5
    )%
    
    
    2.7
    %December 31, 2002
    
    
    (5.7
    )%
    
    
    (4.2
    )%
    
    
    
    
    
    
    2.8
    %
    
    
    5.8
    %
    
    
    11.8
    %
    
    
    18.5
    %
  (1)These shocks represent hypothetical instantaneous and sustained changes from current rates. Corus is also exposed to price risk with its common stock portfolio in
financial industry companies valued at
$189 million, including net unrealized gains of $93 million. This price risk
could have a direct effect on the net income of Corus to the extent that any
price declines are determined to be other than temporary. Temporary declines,
however, do not have a direct effect on the net income of Corus, as they are
recorded directly in Shareholders Equity, net of tax. The effect of temporary
declines impacts Corus net income only upon sale of the security. | 70 |




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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT FORWARD - LOOKING STATEMENTS This disclosure contains forward-looking statements made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements may be identified by, among other things, the use of
forward-looking terms such as may, intends, expects, anticipates,
estimates, projects, targets, forecasts, seeks, or attempts or the
negative of such terms or other variations on such terms or comparable
terminology. By their nature, these statements are subject to risks,
uncertainties and other factors which could cause actual results to differ
materially from future results expressed or implied by such forward-looking
statements. Important factors that might cause Corus actual results to differ
materially include, but are not limited to, the following:  
    
the general state
of the economy and, together with all aspects of our business that are affected
by changes in the economy, the impact that low rates have on Corus net
interest margin;
    
    Corus ability to continue its strong loan originations and, in turn, its
ability to increase the commercial real estate loan portfolio;  
    
    Corus ability to access cost-effective funding, especially with brokered
certificates of deposit, to fund marginal loan growth;
    
    changes in
managements estimate of the adequacy of the allowance for loan losses;
    
    changes in the overall mix of Corus loan and deposit products;
    
    the impact of
competitors pricing initiatives on loan and deposit products;
    
    the extent of
defaults and losses given default, and the resulting lost interest income from
such defaults;
    
    changes in the laws, regulations and policies governing
financial services companies; and
    
    the decision by the Federal Reserve
regarding the treatment of Trust Preferred securities. | 71 |




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##### 



CORUS BANKSHARES 2003 ANNUAL REPORT SUPPLEMENTAL FINANCIAL DATA: 10-YEAR HISTORY DECEMBER 31
    
    2003
    
    2002
    
    2001
    
    2000
    
    1999(dollars in thousands, except per share data)CONDENSED INCOME STATEMENTSNet interest income
    
    $
    123,427
    
    
    $
    98,287
    
    
    $
    107,709
    
    
    $
    121,051
    
    
    $
    106,131Provision for loan losses
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Noninterest income
    
    
    16,920
    
    
    
    23,079
    
    
    
    25,716
    
    
    
    47,260
    
    
    
    18,948Noninterest expense
    
    
    52,533
    
    
    
    47,472
    
    
    
    51,100
    
    
    
    54,654
    
    
    
    63,096Income Before Income Taxes
    
    
    87,814
    
    
    
    73,894
    
    
    
    82,325
    
    
    
    113,657
    
    
    
    61,983Income tax expense
    
    
    29,404
    
    
    
    24,580
    
    
    
    28,142
    
    
    
    38,903
    
    
    
    21,257Net Income
    
    $
    58,410
    
    
    $
    49,314
    
    
    $
    54,183
    
    
    $
    74,754
    
    
    $
    40,726SELECTED PER SHARE DATA (1)Diluted earnings
    
    $
    2.04
    
    
    $
    1.72
    
    
    $
    1.89
    
    
    $
    2.62
    
    
    $
    1.41Cash dividends declared on common stock
    
    
    0.830
    
    
    
    0.318
    
    
    
    0.308
    
    
    
    0.298
    
    
    
    0.288Book value at year-end
    
    
    19.48
    
    
    
    17.07
    
    
    
    15.92
    
    
    
    14.23
    
    
    
    11.41Market price at year-end
    
    
    31.02
    
    
    
    21.83
    
    
    
    22.70
    
    
    
    24.74
    
    
    
    12.00AVERAGESAssets
    
    $
    2,984,021
    
    
    $
    2,639,429
    
    
    $
    2,672,971
    
    
    $
    2,518,960
    
    
    $
    2,530,782Loans, net of unearned discount
    
    
    2,000,505
    
    
    
    1,608,541
    
    
    
    1,615,665
    
    
    
    1,807,453
    
    
    
    1,640,101Earning assets
    
    
    2,890,897
    
    
    
    2,546,840
    
    
    
    2,577,433
    
    
    
    2,398,989
    
    
    
    2,419,667Deposits
    
    
    2,356,074
    
    
    
    2,081,956
    
    
    
    2,160,333
    
    
    
    2,081,986
    
    
    
    2,115,575Shareholders equity
    
    
    504,576
    
    
    
    467,369
    
    
    
    424,427
    
    
    
    346,880
    
    
    
    326,776AT YEAR - ENDAssets
    
    $
    3,643,830
    
    
    $
    2,617,050
    
    
    $
    2,659,322
    
    
    $
    2,598,467
    
    
    $
    2,378,544Loans, net of unearned discount
    
    
    2,433,771
    
    
    
    1,741,969
    
    
    
    1,475,245
    
    
    
    1,551,880
    
    
    
    1,727,357Earning assets
    
    
    3,560,421
    
    
    
    2,539,400
    
    
    
    2,507,403
    
    
    
    2,458,499
    
    
    
    2,265,687Deposits
    
    
    2,846,402
    
    
    
    2,059,773
    
    
    
    2,121,456
    
    
    
    2,107,630
    
    
    
    1,964,420Shareholders equity
    
    
    546,180
    
    
    
    482,041
    
    
    
    450,886
    
    
    
    402,353
    
    
    
    327,825SIGNIFICANT RATIOSReturn on average assets
    
    
    2.0
    %
    
    
    1.9
    %
    
    
    2.0
    %
    
    
    3.0
    %
    
    
    1.6
    %Return on average equity
    
    
    11.6
    %
    
    
    10.6
    %
    
    
    12.8
    %
    
    
    21.6
    %
    
    
    12.5
    %Efficiency ratio
    
    
    37.5
    %
    
    
    40.9
    %
    
    
    40.1
    %
    
    
    38.1
    %
    
    
    41.0
    %Net interest margin
    
    
    4.3
    %
    
    
    3.9
    %
    
    
    4.3
    %
    
    
    5.1
    %
    
    
    4.5
    %Nonperforming loans/Total loans
    
    
    0.6
    %
    
    
    0.4
    %
    
    
    0.4
    %
    
    
    0.3
    %
    
    
    0.7
    %Allowance for loan losses/Nonperforming loans
    
    
    234.1
    %
    
    
    562.0
    %
    
    
    697.5
    %
    
    
    769.8
    %
    
    
    255.7
    %Allowance for loan losses/Total loans
    
    
    1.5
    %
    
    
    2.1
    %
    
    
    2.7
    %
    
    
    2.6
    %
    
    
    1.9
    %Net charge-off/(recovery) ratio
    
    
    0.0
    %
    
    
    0.2
    %
    
    
    (0.1
    )%
    
    
    (0.4
    )%
    
    
    0.2
    %CAPITAL RATIOSTier 1 leverage
    
    
    18.7
    %
    
    
    17.3
    %
    
    
    15.4
    %
    
    
    14.0
    %
    
    
    11.9
    %Tier 1 risk-based capital
    
    
    17.9
    %
    
    
    16.8
    %
    
    
    19.4
    %
    
    
    16.0
    %
    
    
    15.3
    %Total risk-based capital
    
    
    20.5
    %
    
    
    18.9
    %
    
    
    22.0
    %
    
    
    18.6
    %
    
    
    17.8
    %COMMON SHARE DATA (1)Weighted average fully diluted shares
    
    
    28,703
    
    
    
    28,590
    
    
    
    28,619
    
    
    
    28,605
    
    
    
    28,928Common shares outstanding at year-end
    
    
    28,037
    
    
    
    28,238
    
    
    
    28,319
    
    
    
    28,286
    
    
    
    28,739  [Additional columns below] [Continued from above table, first column(s) repeated] DECEMBER 31
    
    1998
    
    1997
    
    1996
    
    1995
    
    1994(dollars in thousands, except per share data)CONDENSED INCOME STATEMENTSNet interest income
    
    $
    98,220
    
    
    $
    101,271
    
    
    $
    111,339
    
    
    $
    98,517
    
    
    $
    68,793Provision for loan losses
    
    
    10,000
    
    
    
    16,000
    
    
    
    16,000
    
    
    
    5,779
    
    
    
    Noninterest income
    
    
    25,666
    
    
    
    26,913
    
    
    
    23,067
    
    
    
    14,111
    
    
    
    13,235Noninterest expense
    
    
    51,889
    
    
    
    51,677
    
    
    
    50,496
    
    
    
    51,650
    
    
    
    45,222Income Before Income Taxes
    
    
    61,997
    
    
    
    60,507
    
    
    
    67,910
    
    
    
    55,199
    
    
    
    36,806Income tax expense
    
    
    21,369
    
    
    
    21,136
    
    
    
    24,005
    
    
    
    19,429
    
    
    
    12,790Net Income
    
    $
    40,628
    
    
    $
    39,371
    
    
    $
    43,905
    
    
    $
    35,770
    
    
    $
    24,016SELECTED PER SHARE DATA (1)Diluted earnings
    
    $
    1.38
    
    
    $
    1.32
    
    
    $
    1.47
    
    
    $
    1.18
    
    
    $
    0.79Cash dividends declared on common stock
    
    
    0.278
    
    
    
    0.265
    
    
    
    0.238
    
    
    
    0.182
    
    
    
    0.148Book value at year-end
    
    
    10.93
    
    
    
    9.93
    
    
    
    7.95
    
    
    
    6.48
    
    
    
    5.15Market price at year-end
    
    
    16.13
    
    
    
    19.78
    
    
    
    16.13
    
    
    
    12.75
    
    
    
    8.19AVERAGESAssets
    
    $
    2,417,647
    
    
    $
    2,237,419
    
    
    $
    2,174,088
    
    
    $
    1,957,979
    
    
    $
    1,607,208Loans, net of unearned discount
    
    
    1,525,349
    
    
    
    1,570,521
    
    
    
    1,601,269
    
    
    
    1,315,105
    
    
    
    1,016,696Earning assets
    
    
    2,311,562
    
    
    
    2,127,140
    
    
    
    2,063,608
    
    
    
    1,846,185
    
    
    
    1,490,839Deposits
    
    
    2,031,198
    
    
    
    1,888,966
    
    
    
    1,890,688
    
    
    
    1,762,275
    
    
    
    1,423,775Shareholders equity
    
    
    295,854
    
    
    
    263,612
    
    
    
    215,158
    
    
    
    165,425
    
    
    
    150,486AT YEAR - ENDAssets
    
    $
    2,577,460
    
    
    $
    2,251,927
    
    
    $
    2,218,528
    
    
    $
    2,125,092
    
    
    $
    1,889,455Loans, net of unearned discount
    
    
    1,551,587
    
    
    
    1,545,975
    
    
    
    1,623,145
    
    
    
    1,558,782
    
    
    
    1,100,509Earning assets
    
    
    2,470,865
    
    
    
    2,135,616
    
    
    
    2,111,928
    
    
    
    1,965,923
    
    
    
    1,721,658Deposits
    
    
    2,154,676
    
    
    
    1,863,066
    
    
    
    1,900,679
    
    
    
    1,898,540
    
    
    
    1,698,498Shareholders equity
    
    
    318,130
    
    
    
    291,633
    
    
    
    235,590
    
    
    
    194,726
    
    
    
    156,859SIGNIFICANT RATIOSReturn on average assets
    
    
    1.7
    %
    
    
    1.8
    %
    
    
    2.0
    %
    
    
    1.8
    %
    
    
    1.5
    %Return on average equity
    
    
    13.7
    %
    
    
    14.9
    %
    
    
    20.4
    %
    
    
    21.6
    %
    
    
    15.9
    %Efficiency ratio
    
    
    41.5
    %
    
    
    38.9
    %
    
    
    35.9
    %
    
    
    42.9
    %
    
    
    51.7
    %Net interest margin
    
    
    4.3
    %
    
    
    4.9
    %
    
    
    5.5
    %
    
    
    5.4
    %
    
    
    4.7
    %Nonperforming loans/Total loans
    
    
    1.1
    %
    
    
    1.8
    %
    
    
    2.2
    %
    
    
    1.2
    %
    
    
    0.7
    %Allowance for loan losses/Nonperforming loans
    
    
    206.4
    %
    
    
    112.8
    %
    
    
    92.8
    %
    
    
    136.4
    %
    
    
    273.6
    %Allowance for loan losses/Total loans
    
    
    2.3
    %
    
    
    2.0
    %
    
    
    2.0
    %
    
    
    1.6
    %
    
    
    1.8
    %Net charge-off/(recovery) ratio
    
    
    0.3
    %
    
    
    1.2
    %
    

    
    0.6
    %
    
    
    
    %
    
    
    (0.1
    )%CAPITAL RATIOSTier 1 leverage
    
    
    10.3
    %
    
    
    10.5
    %
    
    
    9.7
    %
    
    
    9.2
    %
    
    
    8.6
    %Tier 1 risk-based capital
    
    
    15.0
    %
    
    
    15.1
    %
    
    
    13.5
    %
    
    
    12.6
    %
    
    
    14.7
    %Total risk-based capital
    
    
    18.1
    %
    
    
    16.4
    %
    
    
    14.8
    %
    
    
    13.9
    %
    
    
    16.0
    %COMMON SHARE DATA (1)Weighted average fully diluted shares
    
    
    29,547
    
    
    
    29,932
    
    
    
    29,988
    
    

    
    30,482
    
    
    
    30,584Common shares outstanding at year-end
    
    
    29,102
    
    
    
    29,363
    
    
    
    29,640
    
    
    
    30,054
    
    
    
    30,484   (1)
    
    All amounts have been restated to reflect a 100% stock dividend on 12/15/03 and a 2:1 stock split on 9/25/95. | 72 |




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CORUS BANKSHARES 2003 ANNUAL REPORT DIRECTORS andEXECUTIVE OFFICERS DIRECTORS
Joseph C. GlickmanChairman of the Board,
Corus Bankshares, Inc. Robert J. GlickmanPresident and Chief Executive Officer,
Corus Bankshares, Inc. Robert J. Buford*President and Chief Executive Officer,
Planned Equities, Inc.
Planned Realty Group, Inc.
Steven D. FifieldPresident, Fifield Realty Corp.
Rodney D. Lubeznik*President, Restaurant Management Corp.
Michael J. McClure*Executive Vice President,
Broadspire Management Services
Peter C. RobertsVice President and Chief Executive
Officer - Americas,
Jones Lang LaSalle
*Audit Committee Member EXECUTIVE OFFICERS Robert J. GlickmanPresident and Chief Executive Officer Michael G. SteinExecutive Vice President,
Commercial Lending Tim H. TaylorExecutive Vice President and
Chief Financial Officer John M. BarkidjijaSenior Vice President, Commercial Lending Brian J. BrodeurSenior Vice President, Commercial Lending Randy P. CurtisSenior Vice President, Retail Banking Michael E. DulbergSenior Vice President and
Chief Accounting Officer Michael W. JumpSenior Vice President, Operations Terence W. KeenanSenior Vice President, Commercial Lending
Richard J. KoretzSenior Vice President, Finance
John R. MarkowiczSenior Vice President, Commercial Lending
Joel C. SolomonSenior Vice President, Commercial Lending
Janice BakeFirst Vice President, Operations
Yolanda M. DeenFirst Vice President, Retail Banking
Dwight L. FrankfatherFirst Vice President, Commercial Lending
Peter R. FreundFirst Vice President, Commercial Lending
Mary S. KoehlerFirst Vice President, Retail Banking
Marilyn Klehm MartinFirst Vice President, Operations
Daniel A. NiedermeyerFirst Vice President,
Consumer Lending/Operations David R. PlogerFirst Vice President, Commercial Lending Daniel P. SemenakFirst Vice President, Finance
Timothy J. StodderFirst Vice President, Commercial Lending | 74 |




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##### 



SHAREHOLDER INFORMATION

CORPORATE OFFICES

3959 North Lincoln Avenue
Chicago, Illinois 60613
Telephone 773-832-3088
www.corusbank.comACCESS TO REPORTS

The Companys Annual
Report on Form 10-K, quarterly
reports on Form 10-Q, current
reports on Form 8-K, and all
amendments to those reports are
made available free of charge
through the Companys website
at www.corusbank.com as soon
as reasonably practicable after
such material is electronically
filed with or furnished to the
Securities and Exchange
Commission. Copies will be
available upon written request
to the Chief Financial Officer
of the Company. A charge will
be made for exhibits requested.

ANNUAL MEETING
10:00 a.m., April 21, 2004
CORUS BANK, N.A.
4800 North Western Avenue
Chicago, Illinois 60625TRANSFER AGENT AND REGISTRAR

Mellon Investor Services LLC
Overpeck Centre
85 Challenger Road
Ridgefield Park, New Jersey 07660 I-888-213-0965
Toll-free number for shareholders
1-800-231-5469
TDD (Telecommunications Device for the Deaf) number for
hearing/speech impaired shareholders

www.melloninvestor.comMARKET-MAKERS FOR CORUS BANKSHARES, INC. STOCK INCLUDE :

Goldman, Sachs & Co.
Howe Barnes Investments, Inc.
Knight Securities, L.P.
Morgan Stanley & Co., Inc.




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(CORUS BANKSHARES LOGO)